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The weekly exchange net flow of Ethereum indicates a growing accumulation trend

Published by
Nonhlanhla P Dube

Ethereum was one of the biggest winners in the crypto market’s climb last week. The network received a boost when one of Ethereum’s developers indicated that the forthcoming Merge will most likely take place in September. It started a chain reaction that spread to the other digital assets in the space. However, based on recent on-chain indicators, Ethereum investors appear to be far from finished.

Exchange outflows are increasing

In the recent week, both large and small Ethereum investors have increased their holdings. This is evident in the amount of ETH that was reported leaving centralized exchanges vs the amount that was entering them. The gap between the two is significant, and it reflects how investors feel about investing in ETH.

According to data from the previous week, R55 billion in ETH was transferred to centralized exchanges. However, the amount of ETH pouring out was around 100 % higher. According to Glassine data, R108.5 billion flowed out, resulting in a -R51.7 billion net flow.

This demonstrates that investors are collecting by transferring ETH from exchanges to personal wallets for safekeeping. It also indicates that these investors have a long-term hold approach. Furthermore, it indicates that the selling pressure that has been weighing on the market in recent weeks has begun to ease. In its place, there is now intense purchasing pressure, allowing investors to amass as much ETH as possible.

The Ethereum Merger is getting closer

The majority of Ethereum’s gains in the recent week have been linked to updates about the imminent merge. The price of Ethereum had increased by more than 40% as a result of the announcement, but the price was not the only thing affected by the statement.

The amount of ETH staked on the Ethereum network ahead of the Merge had been increasing in recent months, but it increased significantly after the announcement. At the time of writing, the total amount of ETH staked on the network had hit an all-time high of 13,152,149 ETH, and this figure is projected to rise as the date approaches. 

This means that the ETH 2.0 deposit contract now has more than R334 billion in ETH. This is not the highest point in terms of cash value, but it is important given that the price of ETH is down more than 70% from its all-time high.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: Ethereum
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