Glassnode’s on-chain data shows that the total sum of Ethereum (ETH) has dropped to a level that was last seen 2-years back. As per the estimates of Glassnode, the total number of ETHs currently held on the centralized crypto exchanges has fallen to 13.3 million, which is the lowest level that hasn’t been witnessed since June 2019. In the last 9-months (since September 2020), the number of Ether on centralized exchanges has dropped by 30%. In September 2020, the number of Ether on centralized exchanges reached a peak at 19 million ETH.
A fall in the total number of Ethereum (ETH) coins on centralized exchanges indicates a bullish trend in the market. A significant drop in ETHs suggests that long-term investors are moving their Ether assets into secure storages/wallets and locking their funds for earning yields through staking or decentralized finance protocols.
The leading data provider, Glassnode, reported in its “Week on Chain” report that there has been a fall in exposure to BTC in favor of ETH. The report said that they have found a correlation in the spending behavior of reasonably old Bitcoin unspent transaction outputs of between 6 months and 3 years. This finding has indicated that the long-term investors could be flipping BTC into ETH.
Glassnode’s report said:
“Whilst this is only an empirical observation (correlation <> causation), the distinct increase in these older BTC being spent back into circulation after a prolonged period of holding makes a compelling case.”
It went on to say that over the last 4-weeks amid the recent bullish price action of Ether (ETH), on-chain activity has increased significantly. Since the beginning of 2021, there have been notable upticks in the total number of smart contract calls, daily transactions, and Uniswap transactions.
Daily transactions of Ethereum (ETH) have reached an all-time high of 1.63 million this week, which is an increase of 22.5% over the previous peak of December 2017. At press time, the price of ETH against the US Dollar cooled off from its ATH of $4,220 (reached on May 10) and is now trading at around US$3,927.29.
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