Ethereum (ETH) flew off centralized exchanges this week, potentially reducing selling pressure on the ETH market, according to the crypto analytics firm IntoTheBlock.
In a new analysis, Lucas Outumuro, IntoTheBlock’s head of research, tracked Ethereum’s netflows, which measure the ETH moving in and out of centralized crypto exchanges by subtracting the amount of ETH’s withdrawals from its deposits.
Outumuro notes that more than $1 billion worth of Ethereum netflows left centralized exchanges this week. ETH’s network fees, which indicate the willingness to spend and demand to use the asset, increased by more than 30% over the same time period.
Bitcoin (BTC) also flowed off centralized exchanges, clocking $300 million worth of net outflows and breaking an eight-week trend of inflows onto exchanges. Bitcoin’s network fees spiked by more than 50% this week as well.
Large upticks in exchange inflows tend to lead to an average price drop of 5% for crypto assets, according to a 2021 study published by fellow crypto analytics firm Santiment.
ETH is trading at $2,512 at time of writing. The second-ranked crypto asset by market cap is up 2.64% in the past 24 hours.
BTC is trading at $47,478 at time of writing. The top-ranked crypto asset by market cap is up nearly 3% in the past 24 hours.
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Source: https://dailyhodl.com/2024/02/10/more-than-1000000000-in-ethereum-flows-out-of-centralized-exchanges-this-week-intotheblock/