The undisputed leader of the crypto altcoin market, Ethereum (ETH), witnessed significant outflows last week, contributing substantially to the total outflow volume for the month. But how significant was the impact of this situation on the exchanges?
Current Ethereum (ETH) Status
According to data provided by IntoTheBlock, there was an outflow of approximately $500 million in Ethereum last week. To put it more clearly, this means that withdrawals of ETH worth around $500 million took place across all exchanges.
In particular, this massive outflow constituted a large portion of the total ETH withdrawals of approximately $1.2 billion that occurred throughout the month. Considering this situation, two different scenarios emerge.
First, investors may think the price of ETH is low and are not considering selling. Second, investors may be restructuring their portfolios for airdrops, which have been increasingly discussed recently.
ETH analysis by CryptoQuant showed a dominance of outflows from the market since the beginning of the month. Looking at the graph, it is indicated that the last instance of inflow was recorded on January 30th, while a dominant outflow was observed. At the time of writing, a continuous outflow of over 3,000 ETH was seen.
The Status of Ethereum Supply on Exchanges
Looking at the Ethereum supply on exchanges, it wouldn’t be wrong to say that there was a mixed trend throughout January. The Santiment graph below indicates an increase in supply reaching approximately 10.7 million as of January 15th.
Subsequently, a clear decline is observed, and by January 28th, the supply had fallen to 10.3 million. Nevertheless, the supply started to rise again in the last days of January and continued this trend into February. At the time this article was written, the Ethereum supply on exchanges was around 10.6 million.
Ethereum Decline on Binance
While the general Ethereum supply on exchanges has recently seen growth, a contrasting situation emerged in the historical view on Binance. During January, the historical balance on Binance did not provide a clear picture.
According to the Santiment graph below, until January 23rd, the ETH balance on Binance began to rise, even exceeding 3.9 million from 3.8 million.
In the following 9 days, it is understood that the balance has fallen to around 3.7 million as of the time of writing. Considering this decline, it reflects a decrease in the volume of Ethereum on the world’s largest exchange by volume.
At the time of writing, there was a 0.45% decrease in the ETH price. After the decline, the ETH price was trading at $2298.
