Ethereum Exchange outflows hit four-year low as DailyCoin’s ether price rises
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2021 can be considered a good year in general, with a value of more than 450% year-on-year. Despite Ethereum’s strong performance this year, Ether’s exchange outflows have fallen to a four-year low.
According to Glassnode data, ETH exchange outflows are at their lowest point since January 2018. Exchange outputs show the number of tokens that have been removed from the exchange portfolios at a given time.
Exchange output has long been used as an indicator to determine trends in the crypto market. Even if investors see the low exchange rate as a precursor to a downward trend, they may be only hopeful of the many situations in Ethereum.
Exchange outflows fall as the price of ETH rises
The interesting thing about the fall in Ethereum is that it is related to the rise in the price of Ethereum.
CryptoQuant’s chain data confirms that ETH exchange outflows have been steadily declining throughout the year.
Graph showing Ethereum derivative exchange outflows from January 1, 2021 to December 27, 2021 (Source: CryptoQuant)
As for the correlation, the owners of Ethereum, who were expecting a major rally after the November ATH, could move their stakes from the exchanges, and may be contributing to the decline to a large extent.
The world’s largest cryptocurrencies are following a similar trend. According to the chain, the amount of BTC held in exchanges fell to 1.3 million, or 6.3% of the total supply of Bitcoin.
Conversely
- Since the release of ETH at a four-year low, the price of Ether has dropped 4% and is now selling at $ 3,919 in this writing.
Ethereum (ETH) 24-hour price chart. Source: Tradingview
Why You Should Care
Many investors have decided to make HODL rather than sell their coins in 2022 in anticipation of the explosive growth of the crypto industry.
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