Crypto Exchanges Witness Fast Depletion of Ethereum Reserves
In the last two days, the quantum of Ether possessed by cryptocurrency exchanges has plummeted.
Data provided by CryptoQuant data indicates that only 8.10 million ETH is currently held as reserves by centralized cryptocurrency exchanges.
The rate of movement of Ether out of cryptocurrency exchanges was pointed out by Nuggets News’ Alex Saunders, who pointed a 10% decline in reserves of Ether by centralized cryptocurrency exchanges as of January 14 i.e. a drop to 10 million Ether (ETH), from 11 million in a day. He forecasts exchanges to “run out of ETH in 10 days at current rate.”
Saunders, a few hours before, has also pointed out that the drop in Ether reserves had surged by another 20%. At such a rate, he expects centralized exchanges to be devoid of Ether in the next 48 hours.
Rest of the data providers also indicate that cryptocurrency exchange balance have dropped by 42.5% from the peak of 14.10 million recorded in the second-week of May 2020.
Data published by Glassnode shows that the reserves of Ether on centralized exchanges have never gone this much lower since July 2018. At the time of writing this article, only 7% of overall Ether in circulation is held by exchanges.
Exchanges could be out of $ETH within 48 hours. Demand has sky rocketed. Exchange reserves fell 20% from 10M to 8M in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range. 🌐🖥️👽 #ETH2 #DeFi #NFTs #Gaming #DAO pic.twitter.com/rYPOch2u7p
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 14, 2021
Saunders believes that the data signals a massive rally that will take Ether to a new all-time peak. Saunders stated:
Data provided by CryptoQuant indicates that Bitcoin reserves of cryptocurrency exchanges have declined by 21% since recording a peak of roughly three million in March last year. Nevertheless, the latest movement of Ether out of cryptocurrency exchanges surpasses the rate at which Bitcoin moved out of exchanges.
Bitcoin reserves declined merely 4.5% since October 21 in cryptocurrency exchanges. During the same period, price of Bitcoin rose by 230%, from about $12,000 to $40,000.
As per cryptocurrency market data provider Into The Block, Ether is signaling a bullish rally, with the imbalance in bid-to-ask volume rising by nearly 9%.