Exchange outflows of Ethereum (ETH), the second-largest cryptocurrency, have increased.
IntoTheBlock reports that a total of $210 million in ETH was removed from centralised exchanges (CEXs) over the week, marking the largest net withdrawals during a seven-day period since August.
Exchange outflows frequently indicate that investors are moving money to private wallets from centralised exchanges.
https://x.com/intotheblock/status/1720543924161241155?s=20
The most widely accepted theory on the increase in exchange outflows is that long-term investors are taking their assets out in order to hold onto them for extended periods of time. This may be seen as an indication of support for the long-term prospects of cryptocurrencies.
The increase in exchange withdrawals has sparked conjecture on Ethereum’s pricing. Many are speculating as to whether this positive trend would trigger a rebound and maybe increase the price of ETH.
As of this writing, ETH has increased by 1.57% to $1,836 during the previous day.
The on-chain analytics company Santiment thinks that exchange outflows and network expansion contributed to ETH’s surge beyond $1,800. It claims that ETH may have the basis to reach $2,000 once more if the long-term pattern of network expansion and exchange outflows are maintained.
Ethereum volumes are on rise
The weekly value of assets settled on Ethereum, which includes ETH, stablecoins, and the top 50 tokens, has reportedly hit its highest point since the SVB meltdown in March, according to IntoTheBlock.
Over $213 billion worth of Ethereum transactions were completed last week on the mainnet alone, with an additional $16 billion being exchanged across Arbitrum, Optimism, and Base.
The volume settled on-chain is rising, which might indicate that the fundamentals are getting better.
Even although there can be a brief drop in market prices, enhanced on-chain activity and more spot-driven inflows show that robust demand is propelling the growth of cryptocurrencies.
