According to data shared by crypto analytics provider IntoTheBlock, $1.2 billion worth ETH was withdrawn from centralized exchanges on Sept. 16 to mark a new record in short-term outflows from exchanges.
IntoTheBlock noted that Ether’s price rallied by 60% in the 30 days after $1 billion was pulled from centralized trading platforms in April.
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
The situation has changed since April however. Last month’s London upgrade introduced a burn mechanism into Ethereum’s fee market, creating increased deflationary pressure on Ether’s supply dynamics.
At the time of writing, 309,505 Ether worth more than $1.1 billion has been burned in the 42 days since EIP-1559 went live, according to Ultrasound Money. As such, Ether has been removed from supply at a rate of roughly 5.05 ETH ($18,061) every minute or $26 million daily since the upgrade.
#ethereum supply on exchanges just keeps dropping, and the price just keeps rising. $10,000 is programmed in already. pic.twitter.com/jRTUYHK4Ca
— Lark Davis (@TheCryptoLark) September 17, 2021
Booming NFT marketplace OpenSea is Ethereum’s leading DApp by burn rate representing more than 14% of all ETH that has been removed from supply, followed by Uniswap V2 with 5.5%, Tether with 4.9%, and Axie Infinity with 3%. Ether transfers have also driven 8.7% of burned Ethereum.
Related: Ethereum options data suggests the battle for $4K ETH is at least a week away
Bitcoin has also seen steady outflows from centralized trading venues since peaking 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.
#Bitcoin exchange balances have returned to 13.1% of circulating $ BTC supply, winding back the clock on inflows to Feb 2018.
The all-time peak exchange balance was 17%, hit on the exact bottom of the March 2020 sell-off.
The trend changed that day. pic.twitter.com/CooGIBmaCh
– Yann & Jan (@Negentropic_) September 14, 2021
