Ethereum Sees Significant Outflows from Centralized Exchanges: IntoTheBlock
Crypto analytics firm IntoTheBlock has reported that Ethereum (ETH) experienced a significant outflow from centralized exchanges this week, potentially reducing selling pressure on the ETH market. Lucas Outumuro, the head of research at IntoTheBlock, analyzed Ethereum’s netflows, which measure the movement of ETH in and out of centralized crypto exchanges by subtracting withdrawals from deposits.
According to Outumuro, over $1 billion worth of Ethereum netflows left centralized exchanges this week. Additionally, ETH’s network fees, which indicate demand and willingness to use the asset, increased by more than 30% during the same period. Bitcoin (BTC) also experienced outflows from centralized exchanges, breaking an eight-week trend of inflows. BTC’s network fees saw a spike of over 50% this week.
A study by crypto analytics firm Santiment suggests that large increases in exchange inflows typically result in a 5% average price drop for cryptocurrencies. At the time of writing, ETH is trading at $2,512 with a 2.64% increase in the past 24 hours. BTC is trading at $47,478 with a nearly 3% increase in the past 24 hours.
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