Outflows of $210 Million Worth of ETH from Centralized Exchanges (CEXs) in a Week
Ethereum (ETH) witnesses an increase in outflows as exchange offloads surge. A total of $210 million worth of ETH has left centralized exchanges (CEXs) during the week, marking the highest net outflows in seven days since August.
Outflows from exchanges often indicate that investors are transferring assets from centralized exchanges to private wallets. One of the popular interpretations for the rise in exchange offloads is that long-term investors are withdrawing assets to hold them for a longer period. This can be interpreted as a sign of confidence in the long-term prospects of the cryptocurrency.
Many are wondering whether this upward trend will lead to recovery and potentially boost the price of ETH. The surge in outflows has sparked speculations about the price of Ethereum. At the time of writing this report, ETH has risen by 1.57% in the past 24 hours, reaching $1,836. The rise above $1,800 for ETH has been supported by network growth and increased exchange offloads.
Analysts at IntoTheBlock believe that if the long-term trend of network growth and continued exchange offloads persists, ETH may have a justification to surpass $2000 once again. Ethereum volumes are also on the rise.
According to IntoTheBlock, the weekly value of stable assets on Ethereum (including ETH, stablecoins, and top 50 tokens) reached its highest level since the SVB crash in March. The volume traded on the Ethereum mainnet alone exceeded $213 billion last week, with an additional $16 billion transacted between Arbitrum, Optimism, and Base. The increasing volume of stablecoin on-chain suggests that the fundamentals are improving.
While market prices may experience short-term corrections, the improvement in on-chain activity and the increase in immediate cash flows indicate strong demand driving the progress of cryptocurrencies.
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