- Ethereum (ETH) balance on the exchanges (1d MA) has reached the lowest in the last three months.
- Ethereum experienced it’s all time high in the month of May this year, and the ETH balance increased by almost 132,000 ETH.
- In a tweet, Ceteris Paribus interpreted that the market is supposedly bullish for Bitcoin and bearish for Ethereum.
In a recent tweet by Glassnode alerts said that the Ethereum (ETH) balance on the exchanges (1d MA) has reached the lowest in the last three months. The balance amount was almost down to 17,660,972.646 ETH. The last time when the Ethereum balance dipped to a 3 month low was on July 1st, 2020 to 17,661,491.688 ETH.
Previous 3-month low of 17,661,491.688 ETH was observed on 01 July 2020
— glassnode alerts (@glassnodealerts) July 2, 2020
In May, Ethereum Experienced Its All Time High
In the month of May this year, Ethereum experienced it’s all time high and the ETH balance increased by almost 132,000 ETH. This is considered the highest gain since the March 13th’s market crash. However, the opposite happened to Bitcoin. The Bitcoin exchange value shrinked to its year low.
In May, Ceteris Paribus, a cryptocurrency analyst said that the Bitcoin exchange balances were down by almost 300,000 BTC. It was reportedly the lowest since the March’s market crash. In a tweet he interpreted that the market is supposedly bullish for Bitcoin and bearish for Ethereum.
Defi Protocols Held Accountable For This
However the growth of the decentralised finance or DeFi project is held accountable for the recent lows of the ETH exchange balances. DeFi protocols are becoming very popular nowadays and contribute to a great amount of Ethereum’s trade volume. The low balance of ETH in exchanges is just a consequence of growing interest of investors in DeFi projects. 8 months ago a similar low witnessed. However, in March during the market crash maximum values reached because of the huge influx of investors selling their cryptocurrency in the exchanges.
May Possibly Lead To Lack Of Liquidity Of Centralized Exchanges
According to DeFi and its data the amount of locked Ethereum has hiked by 0.5 million since the mid June. The data is only for June and the actual locked Ethereum amount is a lot more and the moment they are experiencing an all time high.
This means that the outflux of the digital assets from the crypto exchanges has an inverse relationship with the amount of locked Ethereum assets in the DeF projects. With Compound being the most popular DeFi protocol after MarkerDAO. This may lead to the lack of liquidity of the centralised exchanges which they may recover with their own funds.
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?