Ethereum Exodus: The Inside Scoop On The Massive $500 Million Weekly Flight


Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, has seen a significant exodus from centralized exchanges in recent weeks, with data suggesting a growing preference for holding the asset outside of trading platforms.

At the time of writing, ETH was trading at $2,289, down 0.7% in the last 24 hours, but managed to gain 1.6% in the last week, data from Coingecko shows.

Ethereum Outflow Hits $1.2 Billion

According to blockchain analytics firm IntoTheBlock, a staggering $500 million worth of ETH exited exchanges last week, contributing to a total outflow of $1.2 billion for the entire month of January. This represents a major shift compared to previous months, raising questions about the motivations behind this trend.

CryptoQuant data paints an even starker picture, showcasing a dominant pattern of outflows since the beginning of January. The chart reveals a persistent decline in exchange holdings, with the last inflow recorded on January 30th. At the time of writing, the outflow continues unabated, with over 3,000 ETH leaving exchanges every hour.

However, the impact on overall exchange supply is not entirely uniform. While the total amount of ETH held on exchanges initially increased in January, reaching around 10.7 million by mid-month, it subsequently dipped to 10.3 million by January 28th. Currently, the supply has resumed an upward trend, sitting at around 10.6 million.

Binance ETH Exodus: Investors’ Strategic Moves

Interestingly, the historical balance of ETH on Binance, the world’s largest cryptocurrency exchange, tells a different story. Despite the overall uptick in exchange holdings, Binance has witnessed a consistent decline in its ETH balance throughout January. From a peak of over 3.9 million ETH on January 23rd, the balance has shrunk to around 3.7 million, indicating that users are actively withdrawing their Ethereum from the platform.

Ethereum currently trading at $2,288.5 on the daily chart:

While the exact reasons behind this trend remain unclear, several possible interpretations emerge:

Featured image from Adobe Stock, chart from TradingView

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