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Traders Withdraw $3.6 Billion in Ethereum from Crypto Exchanges in 17 Days

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Traders Withdraw $3.6 Billion in Ethereum From Crypto Exchanges in 17 Days
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The penciled tentative date for the merger, revealed by Ethereum developer Superphiz, is less than two months away, and the announcement appears to have set off a series of events. Firstly, the native Ethereum token on the network has grown significantly in price, and secondly, since June 30, the Ethereum hashrate has fallen by 18.21%. once held on the exchanges on July 5, and today there are only 22.77 million worth about $35 billion.

Data shows a significant amount of Ethereum has been withdrawn from centralized exchanges

On July 9, 2022, Bitcoin.com News reported on the delayed difficulty bomb and that The Merge will be delayed until at least September. The merger is essentially an upgrade that finally transitions the Ethereum (ETH) network from proof of work (PoW) to proof of stake (PoS).

There are currently two chains, one of which is still using PoW and the Beacon chain is for PoS. On the same day, it became known that 13,012,469 ETH were contributed to the ETH 2.0 contract. Since then, 136,416 ethers have been contributed to the contract, and 410,903 validators.

Traders Withdraw $3.6 Billion in Ethereum from Crypto Exchanges in 17 Days
Ethereum conducted data on exchanges from cryptoquant.com on July 21, 2022.

On July 14, software developer and community director of the Ethereum Beacon network, Superphiz, announced a possible date for the merger, with the chart noting that it could happen within the week of September 19. The developer, however, emphasized that the date is not final and that the community should pay attention to official announcements.

Traders Withdraw $3.6 Billion in Ethereum from Crypto Exchanges in 17 Days
Ethereum conducted data on exchanges from cryptoquant.com on July 21, 2022.

Since then, ETH has managed to gain 36.8% against the US dollar in 30 days as the merger strengthened the price of the smart contract platform token. Ethereum’s hashrate also fell amid the price surge, dropping below 1 petahash per second (PH/s) or 1,000 terahash per second (TH/s). Since then, computing power has improved as the Ethereum network hashrate approaches 1000 TH/s.

Chainalysis data the next day, July 22, 2022

Seven-day stats also show that 2.36 million Ether has been removed from crypto exchanges since July 5, according to data from cryptoquant.com. Ethereum is following the same trend as Bitcoin (BTC) as both crypto assets have been taken off centralized exchanges in large numbers recently.

Bitcoin.com News reported on July 10 that the amount of BTC held on exchanges fell by 9.109% compared to the statistics recorded on May 22. Recent data shows that Ethereum buyers and holders are also moving large amounts of Ether off exchanges. Chainalysis data show that “change [ethereum] conducted on the exchanges for the last day is 1.82 million. [ethereum]highest level in over 365 days.”

Merger or bankruptcy?

While the most recent withdrawals can be attributed to a merger, crypto investors have withdrawn large amounts of funds from exchanges due to serious financial problems of crypto companies. Over the past few weeks, three major crypto firms have filed for bankruptcy and roughly five or more crypto asset platforms have suspended withdrawals.

For example, the accounts of individuals who held crypto assets on platforms such as Celsius and Voyager Digital have been frozen. The fear of losing funds due to an insolvent crypto platform likely triggered an unprecedented wave of withdrawals. During the first week of July, Blockfi CEO Zak Prince told the public that while the company was not exposed to Celsius when Celsius froze operations, it caused a significant “splash in customer withdrawals” on the Blockfi platform.

While the insolvency has resulted in significant losses throughout the digital currency economy, cryptocurrency veterans scolded newcomers for not holding their assets in a non-custodial manner. Insolvency and bankruptcies also caused a surge in people tell others the saying “not your keys, not your coins”.

Tags in this story

17 days, bankruptcies, Chainalysis, cryptoquant.com, data, ETH, ETH 2.0, ETH exchange reserves, ether, ether held on exchanges, Ethereum, ethereum developer, exchange reserves, concerns, hashrate, insolvency, metrics, PoS, PoW, price , Price increase, September 19, Superphiz, Merger, Withdrawal

What do you think about removing the massive amount of ethereum from centralized exchanges? Do you think the withdrawal is because people are anticipating the merger, or do you think it’s because people are afraid to leave funds on centralized exchanges? Let us know what you think about it in the comments section below.

Jamie Redman

Jamie Redman is the head of news at Bitcoin.com News and a fintech journalist based in Florida. Redman has been an active member of the crypto community since 2011. He is passionate about bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image credits: Shutterstock, Pixabay, Wiki Commons

Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.


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