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- Everyone assumed that all of the ETH was stored in investors’ wallets while Ethereum continued to rise, surging by over 86 percent.
- Exiting ETH volumes have ranged from $100 million yesterday to more than $1.6 billion today
- Investors have made sure that they do not keep all of their ETH in their wallets
Everyone assumed that all of the ETH was stored in investors’ wallets during the month when Ethereum kept going higher, surging by over 86 percent. However, the reality is a little different. For a long time, whales were the ones in charge of buying and keeping large quantities of ETH. Even so, such is not the case this time.
What happened to all of Ethereum?
The fact that exchanges’ positions have shifted from selling to buying again was the first example of this finding. And not just on a small scale. Exiting ETH volumes have ranged from $100 million yesterday to more than $1.6 billion today. As previously stated, such amounts would make sense for whales. Except during this moment, the majority of these decisions are made by investors.
This conclusion is based on the fact that participation has increased significantly as the number of new addresses has increased. This number has increased by 8,000 since August. As the number of participants grew, so did the amount of money spent. Furthermore, the number of addresses with balances just reached an all-time high of 60 million. Investors, on the other hand, have made sure that all of that ETH does not end up in their wallets alone. They’re diversifying their Ethereum holdings.
What else has happened to ETH?
Into DeFi protocols, and not in small amounts. The total wealth locked in DeFi protocols throughout the Ethereum network has increased by a factor of ten. TVL now stands at $157 billion, up to $62 billion. As Etheruem remains the highest value locked blockchain, this demonstrates how much DeFi is growing.
Furthermore, a large portion of ETH has been placed into ETH 2.0 deposit contracts. The figure now stands at $23 billion, which is a new all-time record. Despite all of the investments, though, ETH has taken a hit as well.
Over 7000 ETH has been burned since the fee burn mechanism of EIP 1559 was implemented. Due to this, the circulating supply has decreased from 117,219k to 117,212k. The fact that Ethereum has no total supply cap helps to balance out the fee burn, but the 18 million ETH minting cap can be concerning.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
