- Monthly ETH withdrawals now amount to approximately $1.2 billion.
- The historic ETH balance on Binance reaches the lowest in months.
Ethereum [ETH] have experienced significant outflows over the past week, which have contributed substantially to the total outflow volume for the entire month. How has this affected the supply available on exchanges, especially Binance, the largest exchange?
The weekly ETH withdrawal is $500 million
IntoTheBlocks Data showed that Ethereum witnessed an outflow of around $500 million in the past week. This meant that approximately $500 million worth of ETH was withdrawn across all exchanges.
Notably, this recent pullback contributed to total ETH outflows of approximately $1.2 billion for the entire month. This reflected a major trend of Ethereum being delisted from exchanges.
Further analysis of the net exchange flow on CryptoQuant showed the dominance of outflows since the beginning of the month. The graph showed a consistent pattern of outflows, with the last inflow recorded on January 30.
At the time of writing this article, there has been an ongoing outflow of over 3,000 ETH. How does this ongoing trend affect Ethereum supply on exchanges?
Source: CryptoQuant
Analysis of Ethereum offerings on exchanges
Analysis of Ethereum offerings on exchanges showed a mixed trend in January. The chart showed an initial increase in supply, reaching about 10.7 million on January 15.
However, there was a subsequent decline, reducing supply to 10.3 million on January 28. Interestingly, supply has recently shown an upward trend again, which continues into February.
At the time of writing, Ethereum supply on the exchanges was approximately 10.6 million.
Source: Santiment
Historical Ethereum balance on Binance drops
Although the total Ethereum supply on the exchanges has increased recently, the historical balance, especially on Binance, has shown a contrasting trend. As with the general exchange offering, the historical balance on Binance showed a mixed pattern in January.
Source: Santiment
An analysis of the chart showed that the ETH balance on Binance started to increase, from around 3.8 million to over 3.9 million on January 23.
However, there was a subsequent decline and at the time of writing the balance was approximately 3.7 million. This decline indicates that the volume of Ethereum held by the world’s largest exchange has decreased.
The main cause of this decline is user withdrawals, as shown in IntoTheBlock’s data.
Realistic or not, here is the market cap of ETH in BTC terms
Additionally, ETH was trading around $2,319 at the time of writing. What could also be observed on the daily timetable chart was that it has increased over the last three days.
The rise has reduced the strength of the bear trend, and at the time of writing the Relative Strength Index (RSI) was close to the neutral line.