More than $1 billion worth of Ethereum was withdrawn from centralized exchanges within a 24-hour period. It’s the second time this year, and last time the price went vertical.
$1.2 Billion of Ethereum Flows Out of Exchanges
More than $1 billion worth of Ethereum (ETH) has been removed from centralized exchanges in the past 24 hours. This has led to speculation about upcoming price hikes for Ethereum as supply shrinks on many trading platforms.
However, the situation has changed since April. Last month’s London upgrade introduced a burn mechanism in Ethereum’s fee market. This increased deflationary pressures on Ethereum’s supply dynamics.
$26 million outflow per day
At the time of writing, 309,505 Ethereum, valued at over $1.1 billion, has been burned in the 42 days since Ethereum improvement proposal 1559 went live. This data comes from the source Ultrasound Money. Ethereum has been delisted at a rate of around 5.05 ETH ($18,061) per minute. This is equivalent to $26 million per day since the upgrade.
Thriving NFT marketplace OpenSea is the largest decentralized application of Ethereum in terms of burn rate. More than 14% of ETH removed from the offering comes from OpenSea. This is followed by Uniswap v2 at 5.5%, Tether 4.9% and Axie Infinity at 3%. Ethereum transfers have also driven 8.7% of the burnt Ethereum.
Bitcoin (BTC) has also seen a steady outflow from centralized trading platforms since it peaked at 17% of supply in May. According to on-chain analytics firm Glassnode, centralized exchanges’ BTC reserves have fallen to their lowest level since February 2018.