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The net amount of $ETH leaving exchanges just hit a new record
Over $1.2B worth of $ETH left centralized exchanges yesterday
Last time $1B+ left CEXs, #Ethereum increased by 60% within 30 days pic.twitter.com/wfRuX11Rtk
— IntoTheBlock (@intotheblock) September 16, 2021
An Eye-catching Event
The tweet posted on September 17 indicated that $1.2 billion in Ethereum left the CEXs on September 16.
IntoTheBlock is a blockchain company focused on polishing blockchain infrastructure through advanced research into artificial intelligence. Furthermore, it conducts market analyses and price predictions of various crypto assets.
In its opinion, there might be a tremendous price change expected soon after this massive transfer. While some crypto enthusiasts are skeptical about the transfer’s reason, the blockchain company assured that it was not exchanged performing the transactions. According to the thread, IntoTheBlock mentioned that it surveys when exchanges create new wallets based on transaction behaviours.
The Second Massive Ethereum Outflow This Year
Ethereum managed to breach the $1,400 mark at the beginning of the year, reaching a new all-time high. Around the first months, whales maintained a significant outflow of the coin from various exchanges into anonymous wallets. Moreover, crypto traders kept an eye on one specific transfer that breached April’s $1 billion mark.
Soon after, the coin rallied, reaching a new ATH of $4,382 in May 2021. This action meant that the coin’s prices surged by approximately 60% in one month. Although the crypto market crashed soon after, this event was a phenomenal boost for Ethereum, rapidly gaining dominance.
The curious side of the outflow is that Bitcoin is also undergoing slow transfers from centralized trading platforms. In August, Whale Alert noticed a $1.6 million worth of Bitcoin transfer to Xapo and Binance exchange. It indicated a growing interest in Bitcoin and Ethereum as the whale also transferred $570 million in Ethereum.
Furthermore, the coin is seemingly outperforming Bitcoin daily, despite the king coin settling on prices above the $45,000 mark for a while. Many enthusiasts suggest that the lesser Ethereum there is in exchanges, the higher the prices go. Research indicates that 70% of Ethereum’s circulation is currently controlled by wallets holding 10,000 ETH and above.
Could The EIP-1559 Upgrade be The Cause?
It is widely known that Ethereum gas fees have been an undulating problem on the network. The ever-increasing fees, especially during the coin’s rally, have been a discouraging factor for many crypto users. While the chain applied to layer 2 solutions to decongest the network and ease the gas fees, there was a previous proposal to solve the issue.
The EIP-1559 upgrade would be a way to circumvent the worrying gas fees. Ethereum’s co-founder Vitalik Buterin was responsible for the proposal to shift the dynamics of the network’s gas fees model. The recent implementation of the London hard fork on August 5 may be the pathway to Ethereum becoming a deflationary coin.
Since the upgrade, Ethereum has experienced nearly 10% burning of the coin’s total supply. This step is one among many that may boost its price from the current $3,483 and past its ATH. The next few days will be crucial to realize what will be next for Ethereum and its network.