Ethereum (ETH) Exchange Outflow Suggests The ETH Rally Is Not Stopping Anytime Soon

This week Ethereum (ETH) rallied all the way above $3500 levels hitting its new all-time high and pushing its crypto market dominance to 17%. In its journey upwards, Ethereum has toppled many big financial giants like Mastercard (NYSE: MA), PayPal (NASDAQ: PYPL), and Bank of America (NYSE: BAC). 

However, despite a massive 4x run-up this year in 2021, it seems Ethereum (ETH) isn’t stopping anytime soon. The Ethereum (ETH) exchange supply has been dropping at a faster rate than the exchange inflows. This clearly implies further continued growth and less risk or any other major sell-offs.

Courtesy: Santiment

However, the behavior of the Ethereum whale address has been interesting to watch for. While the non-exchange ETH whales have doubled in numbers over the last eight months, the exchange ETH whales have dropped in half. Below is the graph from Santiment that shows a completely opposite behavior of the exchange and the non-exchange whales.

Ethereum Coins Moving to DeFi and ETH 2.0 Deposit Contracts

As ETH supply moves off-exchanges, a massive number of ETH coins at the same time has been moving to Ethereum-based decentralized finance (DeFi) protocols. As per Santiment, the total value of ETH coins locked in DeFi has doubled over the last three months.

Similarly, deposits in the Ethereum smart contracts have also reached an all-time high as of now. The value of ETH coins staked in these deposit contracts has reached close to $13 billion.

Also, there is enough evidence of the fact that U.S. institutional investors have been buying Ethereum recently. The ETH premium on Coinbase has significantly surged since the beginning of 2021.

One of the major issues with high Ethereum on-chain activity has been its gas fee. However, it seems that the gas fee has significantly dropped over the last two weeks thereby alleviating investors’ pain and boosting more network activity. The daily active addresses on Ethereum are also on the rise at this point.

The post Ethereum (ETH) Exchange Outflow Suggests The ETH Rally Is Not Stopping Anytime Soon appeared first on Coingape.

Publication date: 
05/06/2021 - 07:33
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