- This happened despite ETH’s total supply in profit hitting 94.87% at press time.
- As the liquid supply shrinks, investors might have to shell out more to purchase coins.
More than $900 million worth of Ethereum [ETH] was withdrawn from centralized exchanges over the week.
According to on-chain analytics firm IntoTheBlock, this marked the eighth consecutive week of net outflows, causing a sharp reduction in the crypto’s “available to buy” supply.
ETH holders not interested in selling
Typically, spikes in exchange outflows imply a short-term accumulation trend, likely motivated by expectations of higher returns in the future.
As the liquid supply shrinks, investors might have to shell out more to purchase coins, therefore making such occurrences as bullish events.
The recent accumulation trend was interesting, given that ETH’s total supply in profit has sharply increased in the past month, standing at 94.87% as of this writing, AMBCrypto’s examination of Santiment’s data revealed.
This suggested that investors were resisting the temptation to sell in hopes of multiplying their gains in the long term.
However, AMBCrypto noticed a sharply declining graph for the number of addresses with a minimum of 1k coins, according to Glassnode’s data. This suggested that not all coins moved out of exchanges were sitting dormant in cold wallets.
So where were they going?
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Author: Aniket Verma
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