Ethereum, a leading alternative cryptocurrency, has experienced a substantial $500 million withdrawal from exchanges in the past week, intensifying the monthly outflow to roughly $1.2 billion. This trend indicates that investors might either perceive the ETH price as undervalued or are reorganizing their assets in anticipation of potential airdrops. Data from CryptoQuant highlights a consistent pattern of outflows since the beginning of the month, with over 3,000 ETH leaving exchanges recently.
Ethereum’s Exchange Reserves Fluctuate
The amount of Ethereum held on exchanges has shown a fluctuating pattern. After an initial increase in January, the quantity dropped significantly, only to rise again towards the end of the month and into February. This dynamic reflects the current exchange reserves of approximately 10.6 million ETH.
Binance’s Ethereum Holdings Take a Dip
While the overall Ethereum supply on exchanges has been rising, Binance, the largest cryptocurrency exchange by volume, has seen a reduction in its Ethereum holdings. From a peak in mid-January, there has been a noticeable decline in ETH stored on Binance, pointing towards a decrease in available Ethereum on the global market. Despite this trend, Ethereum’s price has experienced only a minor drop, trading at $2298 at the time of writing.