The post Ethereum Exchange Reserves Plummet to a 5-Year Low After Massive 110K ETH Withdrawal appeared first on Coinpedia Fintech News
Ethereum (ETH), the largest smart contract and DeFi ecosystem, is experiencing a surge in on-chain activity, coinciding with the launch of futures ETFs. Market data from Coingecko reveals that during early Asian trading on Thursday, Ethereum witnessed a 24-hour trading volume of approximately $7 billion.
Ethereum’s transition to a proof-of-stake (PoS) blockchain has attracted investors looking to participate in the leading DeFi ecosystem. Ethereum became a deflationary asset after the EIP 1559 upgrade, burning approximately 2.498 million Ether valued at around $8.369 billion.
Santiment’s Insights on Ethereum On-Chain Activity
#Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
Leading crypto market intelligence platform Santiment suggests that Ethereum’s price could be on the cusp of a significant breakout due to increased demand. Notably, Santiment highlights that the supply of Ether on centralized exchanges has reached an all-time low (ATL) due to a surge in outflows to self-custodial wallets.
On a recent Wednesday, Santiment’s on-chain analysis tools recorded approximately 110,000 Ether being moved from crypto exchanges to self-custodial wallets. Consequently, the amount of Ether held in self-custodial wallets has reached an all-time high (ATH) of approximately 115,880,000 ETH units out of the current total supply of approximately 120,241,846 coins.
ETH Price Analysis
Amid the ongoing crypto recovery from a two-year bear market, Ethereum’s price is expected to lead in price discovery in the coming weeks. Furthermore, historical data suggests that October, particularly in pre-halving years, tends to be a generally bullish month for the entire crypto industry.