According to the crypto analytics firm IntoTheBlock, Ethereum (ETH) experienced a significant exodus from centralized exchanges this week, potentially alleviating selling pressure on the ETH market. Lucas Outumuro, the head of research at IntoTheBlock, conducted a thorough analysis of Ethereum’s netflows, which gauge the movement of ETH into and out of centralized crypto exchanges by subtracting withdrawals from deposits. Outumuro revealed that over $1 billion worth of Ethereum netflows departed from centralized exchanges during this period. Additionally, ETH’s network fees, a measure indicating the willingness to spend and the demand to use the asset, surged by more than 30% over the same timeframe.
Similarly, Bitcoin (BTC) witnessed an outflow from centralized exchanges, with net outflows totaling $300 million, breaking an eight-week streak of inflows onto exchanges. Bitcoin’s network fees also saw a notable increase, spiking by over 50% during the week.
Historically, significant upticks in exchange inflows have corresponded with an average price drop of 5% for crypto assets, as revealed by a 2021 study published by Santiment, another crypto analytics firm.
At the time of writing, ETH is trading at $2,512, marking a 2.64% increase in the past 24 hours. Meanwhile, BTC is trading at $47,478, reflecting a nearly 3% rise in the same period.
