$1.2bn in Ether removed from centralised exchanges in 24 hours
17 Sep 2021
Over $1 billion in Ether has been withdrawn from centralised exchanges within a 24-hour period, fuelling speculation about impending Ethereum price gains as supply reduces on several trading venues.
A total of $1.2 billion worth of Ether was withdrawn from these exchanges on Thursday, according to data by crypto analytics provider IntoTheBlock, setting a new record in short-term outflows from exchanges.
The price of Ether enjoyed a 60% rally in the 30 days after $1 billion was withdrawn from centralised trading platforms back in April, according to IntoTheBlock.
That said, since April the situation has altered, Cointelegraph reports. The London upgrade in August saw the launch of a burn mechanism into Ethereum’s fee market, generating a rise in deflationary pressure on Ether’s supply dynamics.
As much as 309,505 Ether worth over $1.1 billion was burned in the 42 days since Ethereum Improvement Proposal (EIP)-1559 was launched – at the time of writing - as per a report by Ultrasound Money. Therefore, Ether has been removed from supply at a rate of around 5.05 ETH every minute or $26 million daily since the upgrade.
Ethereum’s leading DApp by burn rate is NFT marketplace OpenSea, representing over 14% of all ETH removed from supply. This is followed by Uniswap V2 with 5.5%, Tether with 4.9%, and Axie Infinity with 3%, the Cointelegraph report goes on to say. In addition, Ether transfers have fuelled 8.7% of burned Ethereum.
Moreover, Bitcoin has reported steady outflows from centralised trading venues since reaching a high of 17% in May.
Indeed, according to on-chain analytics firm Glassnode, Bitcoin reserves on centralised exchanges have declined to their lowest level since February 2018.
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