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Over $100 Million in ETH taken off exchanges in the last day

Updated: Aug 23, 2024
Published: Jan 23, 2021
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Over 83,000 ETH were taken off exchanges in the last 24 hours. This increased the portion of ETH outside of centralised exchanges to over 80%. At today's price of $1,220 per ETH, these amount to over $102,000,000.

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Bitfinex had the largest outflow (78,000+ ETH) while Huobi had the largest inflow of (28,000+ ETH).

[caption id="attachment_24587" align="aligncenter" width="1574"]size-full wp-image-24587 ETH 24H Outflow[/caption]

Exchange Outflows

It is often viewed as a "bullish" factor for crypto-assets to be withdrawn in large amounts from exchanges, effectively reducing the supply available to trade on the centralised entities where the majority of the volumes still occur.

As an example, BTC began flying off the shelves since the Black Thursday crash (12 March 2020).

[caption id="attachment_24585" align="aligncenter" width="1686"]size-full wp-image-24585 BTC Inflows/Outflows[/caption]

Post-crash and outflows, as the supply reduction began on exchanges and the demand increased that set an off-balance which triggered a price rally.

Ethereum Development & Increased Interest

Over the past few months, Ethereum has seen major developments; the most important of which was the launch of Ethereum 2.0. Phase 0 was launched, with Phase 1 and Phase 2 (final) coming over the next couple years – estimate.

The migration from Proof-of-Work to Proof-of-Stake is meant to both reduce electricity consumption by the network and increase throughput. The latter is temporarily being solved by Layer-2 scalability protocols such as Optimism; using Optimistic Rollups. This means that even though Ethereum 2.0 is not fully developed, the community is finding workarounds for both scalability and fees.

Institutional interest also showed early signs of strength over the past few months. In mid-October, Grayscale’s Ethereum Trust (ETHE) owned 2% of the supply, with that number increasing by $200 Million in between mid-November and mid-December alone; signaling institutional interest. Additionally, an ETH Exchange Traded Fund (ETF) was being launched on the Toronto Stock Exchange which would make gaining exposure to the underlying much easier for traditional finance investors.

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