Altszn.com
  • Home
  • Crypto
    • Altcoins
    • Bitcoin
    • Ethereum
    • Monero
    • XRP
    • Zcash
  • Web3
  • DeFi
  • NFTs
No Result
View All Result
Altszn.com
  • Home
  • Crypto
    • Altcoins
    • Bitcoin
    • Ethereum
    • Monero
    • XRP
    • Zcash
  • Web3
  • DeFi
  • NFTs
No Result
View All Result
Altszn.com
No Result
View All Result

3 reasons why Ethereum exchange reserves are falling to new lows

Altszn.com by Altszn.com
July 8, 2021
in Ethereum
0
3 reasons why Ethereum exchange reserves are falling to new lows
400
SHARES
2.4k
VIEWS
Share on FacebookShare on Twitter


Over the past week, astute crypto market analysts noticed some interesting developments related to the supply of Ether (ETH) as the network’s August 4 London hard fork approaches.

Recent data from CryptoQuant, an on-chain analytics firm, indicates that the amount of Ether held in cryptocurrency exchanges’ reserves has hit new daily lows since the start of July.

Ethereum all exchange reserves. Source: CryptoQuant

To determine if this is a bullish or bearish development for the top altcoin, let’s take a closer look at some of the factors playing a role in the increased demand for Ether, including the Eth2.0 staking contract, increased activity in decentralized finance and traders’ possible excitement ahead of the implementation of Ethereum Improvement Proposal (EIP) 1559.

Eth2 staking surpasses 6 million Ether

One source for the increased demand for Ether is the Eth2 staking contract which surpassed the 6 million Ether mark on June 30.

There is now 6 million ETH in the eth2 deposit contract.

— Anthony Sassano Ξ (@sassal0x) July 1, 2021

Data from CryptoQuant shows that July 1 saw the largest single-day outflow of Ether from exchanges since January 21 with more than 596,000 Ether pulled off exchanges.

Ethereum all exchanges netflow. Source: CryptoQuant

The most recent data provided by Eth2 Launchpad indicates that the current amount staked is 6,166,661, which indicates that not all of the Ether withdrawn from exchanges went into staking.

DeFi values rise

Another possible destination for the Ether being taken off exchanges is the decentralized finance ecosystem which has seen increases in token values as well as the total value locked in DeFi protocols.

Total value locked in all of DeFi. Source: Defi Llama

While Ether and Bitcoin (BTC) hold a lot of the value that is currently locked in DeFi, their prices have remained relatively unchanged over the past week, meaning the recent rise in TVL seen on July 8 may have been caused by rising token values as deposits have remained steady according to deposits and loan data provided by Dune Analytics. 

Traders’ excitement grows ahead of the London hard fork

A third potential contributor to the recent flows seen in Ether is the upcoming London Hard Fork and the EIP-1559 proposal.

Several analysts expect the upgrade to positively impact Ether’s price due to the transition to a more eco-friendly proof-of-stake consensus mechanism as well as a new “scarcity” feature that will reduce the number of tokens in circulation.

Related: Ethereum price can gain 40% on Bitcoin, argues analyst as London fork nears

Excitement about the upcoming hard fork is a possible source in the rise of ETH/BTC pair seen since June 27 as the price of Ether also rose in its USD pair.

ETH/BTC 4-hour chart. Source: TradingView

While Ether has outperformed Bticoin for a majority of the time since June 27, BTC’s performance during the market-wide pullback on July 8 is a sign that BTC remains the most resilient of the cryptocurrencies when…



Read More: cointelegraph.com

Tags: EthereumExchangeFallingLowsReasonsReserves
ADVERTISEMENT

Recent

Crypto exchange Kraken plans move into US stock trading: Report

Crypto exchange Kraken plans move into US stock trading: Report

September 27, 2023
Meta's Quest 3 Shifts Focus from VR to Tag After Apple's Mixed Reality Vision — Despite Little Evidence of Mass Consumer Interest

Meta's Quest 3 Shifts Focus from VR to Tag After Apple's Mixed Reality Vision — Despite Little Evidence of Mass Consumer Interest

September 27, 2023
Do Kwon Opposes SEC’s Extradition Request

Do Kwon Opposes SEC’s Extradition Request

September 27, 2023

Categories

  • Altcoins (265)
  • Bitcoin (8,408)
  • Blockchain (9,255)
  • Crypto (12,641)
  • Dark Web (816)
  • DeFi (5,930)
  • Ethereum (3,962)
  • Exchanges (425)
  • Metaverse (6,565)
  • Monero (490)
  • NFT (4,009)
  • Psychedelic Stocks (537)
  • Solana (2,843)
  • Web3 (13,085)
  • Zcash (411)

Category

Advertise

Advertise your site, company or product to millions of web3, NFT and cryptocurrency enthusiasts. Learn more

Useful Links

Advertise
DMCA
Contact Us
Privacy Policy
Shipping & Returns
Terms of Use

Resources

Exchanges
Changelly
Web3 Jobs

Recent News

Crypto exchange Kraken plans move into US stock trading: Report

Crypto exchange Kraken plans move into US stock trading: Report

September 27, 2023
Meta's Quest 3 Shifts Focus from VR to Tag After Apple's Mixed Reality Vision — Despite Little Evidence of Mass Consumer Interest

Meta's Quest 3 Shifts Focus from VR to Tag After Apple's Mixed Reality Vision — Despite Little Evidence of Mass Consumer Interest

September 27, 2023

© 2022 Altszn.com. All Rights Reserved.

No Result
View All Result
  • Home
    • Home – Layout 1
    • Home – Layout 2
    • Home – Layout 3

© Altszn.com. All Rights Reserved.

  • bitcoinBitcoin (BTC) $ 26,260.00
  • ethereumEthereum (ETH) $ 1,593.81
  • tetherTether (USDT) $ 0.999400
  • bnbBNB (BNB) $ 211.19
  • xrpXRP (XRP) $ 0.500107
  • usd-coinUSDC (USDC) $ 1.00
  • staked-etherLido Staked Ether (STETH) $ 1,593.94
  • cardanoCardano (ADA) $ 0.244787
  • dogecoinDogecoin (DOGE) $ 0.060278
  • solanaSolana (SOL) $ 18.96
  • tronTRON (TRX) $ 0.085348
  • the-open-networkToncoin (TON) $ 2.15
  • polkadotPolkadot (DOT) $ 3.97
  • litecoinLitecoin (LTC) $ 63.43
  • matic-networkPolygon (MATIC) $ 0.501993
  • bitcoin-cashBitcoin Cash (BCH) $ 228.59
  • chainlinkChainlink (LINK) $ 7.67
  • wrapped-bitcoinWrapped Bitcoin (WBTC) $ 26,171.00
  • shiba-inuShiba Inu (SHIB) $ 0.000007
  • daiDai (DAI) $ 1.00
  • true-usdTrueUSD (TUSD) $ 0.998102
  • leo-tokenLEO Token (LEO) $ 3.67
  • uniswapUniswap (UNI) $ 4.22
  • avalanche-2Avalanche (AVAX) $ 8.90
  • stellarStellar (XLM) $ 0.111709
  • moneroMonero (XMR) $ 146.06
  • okbOKB (OKB) $ 42.77
  • binance-usdBUSD (BUSD) $ 0.999847
  • ethereum-classicEthereum Classic (ETC) $ 15.32
  • cosmosCosmos Hub (ATOM) $ 6.95
  • hedera-hashgraphHedera (HBAR) $ 0.049146
  • filecoinFilecoin (FIL) $ 3.18
  • makerMaker (MKR) $ 1,470.57
  • crypto-com-chainCronos (CRO) $ 0.050114
  • internet-computerInternet Computer (ICP) $ 2.91
  • lido-daoLido DAO (LDO) $ 1.46
  • quant-networkQuant (QNT) $ 88.60
  • mantleMantle (MNT) $ 0.386861
  • aptosAptos (APT) $ 5.27
  • vechainVeChain (VET) $ 0.016386
  • arbitrumArbitrum (ARB) $ 0.814895
  • optimismOptimism (OP) $ 1.26
  • nearNEAR Protocol (NEAR) $ 1.07
  • kaspaKaspa (KAS) $ 0.046696
  • rocket-pool-ethRocket Pool ETH (RETH) $ 1,732.20
  • aaveAave (AAVE) $ 60.10
  • the-graphThe Graph (GRT) $ 0.085005
  • whitebitWhiteBIT Coin (WBT) $ 5.18
  • algorandAlgorand (ALGO) $ 0.095279
  • usddUSDD (USDD) $ 0.997459