In the last 24 hours, more than $1 billion worth of Ether (ETH) has been taken off centralised exchanges, leading to predictions about upcoming price increases for Ether as supply shrinks on multiple trading platforms.
According to IntoTheBlock, a crypto analytics company, $1.2 billion worth of ETH faced removal from centralised exchanges on Thursday. It setting a new record for short-term withdrawals from exchanges.
According to IntoTheBlock, Ether’s price increased by 60% in the 30 days following the withdrawal of $1 billion from centralised trading platforms in April.
However, since April, the situation has altered. The London update last month added a burn mechanism to Ethereum’s fee market. It added deflationary pressure on the cryptocurrency’s supply dynamics.
According to Ultrasound Money, in the 42 days since Ethereum Improvement Proposal 1559 went live, 309,505 Ether. Its value is more than $1.1 billion and it witnessed harsh incineration. As a result, after the upgrade, Ether saw an extraction from circulation at a pace of about 5.05 ETH ($18,061) each minute, or $26 million per day.
The nonfungible token industry is booming. By burn rate, OpenSea is Ethereum’s most popular decentralised application. It accounts for more than 14% of all ETH taken from circulation. Followed by Uniswap v2 with 5.5 per cent, Tether with 4.9 per cent, and Axie Infinity with 3%. Ether transfers are also responsible for 8.7% of the Ethereum that went up in smoke.
Since peaking at 17% of supply in May, Bitcoin (BTC) has seen persistent withdrawals from controlled trading platforms.
The BTC reserves of centralised exchanges have dropped to their lowest level since February 2018. According to on-chain analytics firm Glass node.
The CryptoCompare report
According to research by digital asset data source CryptoCompare, Binance Holdings Ltd, the world’s largest cryptocurrency exchange operator, reported a 65 per cent increase in monthly trading volumes on its platform. Despite increased pressure from regulators throughout the world on the crypto exchange, this was the case.
Meanwhile, on Wednesday, a US bitcoin exchange applied to the National Futures Association to become a futures commission merchant. Coinbase Financial Markets Inc. is the company’s official name. Skew, which is famous for following the derivatives market, came in the acquisition of Coinbase earlier this year.
State and municipal governments in the United States are becoming more interested in investing in cryptocurrencies in their pension funds and accepting digital currencies as payment for taxes and services, according to S&P Global Ratings. According to S&P’s September 15 note, as reported by Bloomberg, the outsized profits that cryptocurrencies have earned amid a period of low bond yields have piqued the curiosity of certain pension plans.