Ethereum exchange flow is falling, what does this mean? The Ethereum exchange’s flow has been declining since GDAX stopped offering ETH (ETH/USD) and Gemini stopped offering BTC (BTC/USD) deposits. The flow has fallen to the lowest point since January, when Gemini’s BTC/USD deposit was suspended.
The cryptocurrency industry has seen a lot of bumps in the road. However, it seems like the downtrend is finally coming to an end. Just this week, in fact, bitcoin price has climbed back up to $8,000, and the total market cap has reached a value of over $300 billion.Data collected by Chinese journalist Colin Wu show a sharp drop in Ethereum holdings stored in exchange wallets over the weekend.
The downward trend continued this week, leaving some to wonder what is going on with the second largest crypto currency?
Source: ETHUSD on TradingView.com
A decline in stock flow is generally considered a bullish sign, as it indicates that investors are drawing down assets for long-term storage.
With less liquid supply appearing on the exchanges, the dynamics of constant demand should drive prices up. This also indicates a less active ETH market.
In the same tweet, Wu Blockchain also noted a growing balance in the ETH 2.0 deposit contract. Putting two and two together, we can assume that a portion of the transaction’s ETH goes to a betting contract.
At the same time, the effective balance of the ETH2.0 deposit contract continued to rise, to 6.11424 million.
This will reinforce the bullish scenario by increasing the tightness of supply.
Currently, ETH deposited in the custody agreement are blocked until transactions in the second phase are allowed. Consensys developers have given a vague date for the second phase of the rollout – in 2023 or 2023.
Areversal has already taken place on the Celsius network.
Many believe that the development of Ethereum is contributing to investor confidence. So much so that there is again talk of a bitcoin coup.
Speaking to Kitco News, Alex Maszynski, CEO of Celsius Network, said the switch has already taken place, at least on his platform in terms of dollars.
… The revolution has already taken place. Ethereum has already surpassed Bitcoin in terms of total holdings in the Celsius community. And I think the wider market will follow …..
But the term flipping generally refers to a project that exceeds another in market value. Not the total dollar balance held by investors on a particular platform.
Nevertheless, Mashinsky notes that the example of using return in Ethereum has broader appeal than bitcoin’s store of value. According to him, this will eventually lead to a distortion of the market.
And profitability as an app just has a larger user base, right? There are more people in the world struggling to be profitable than there are talking: I’m afraid for my fiat electricity, I’m saving some value…..
Based on bitcoin’s current market value of $636 billion, Ethereum needs to hit the $5,400 mark to take the top spot.
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