Ethereum Balance on Exchanges Drops While ETH Deposits are Sent to DeFi
Renowned analytics service Glassnote has revealed that the ETH balance on online exchanges has declined to a nine-month low. In addition, the number of Ethereum wallets and other on-chain fundamentals has also dropped significantly.
The analytics provider has also reported on Twitter that ETH on-chain fundamentals have not been doing very well in the last period. Earlier today, September 21st, the analytics company sent out a tweet with a chart that shows the amount of ETH held by users on various crypto exchanges has witnessed a rather great decrease and managed to hit a nine-month low.
The value of this measurement now totals 16,583,339.932 ETH. The prior low that was similar to this was registered on exactly the same day in 2019.
Previous 9-month low of 16,583,645.541 ETH was observed on 21 December 2019
— glassnode alerts (@glassnodealerts) September 20, 2020
Number of Wallets With 1,000+ ETH Plummets
Moreover, the amount of ETH wallets in which users kept 1,000 Ethereum or more has encountered a significant two-year decrease, as per another tweet shared by Glassnode.
At the moment, there are 7,218 wallets with 1,000 or more ETH out there, but this number is plummeting at a rapid pace.
Previous 2-year low of 7,219 was observed earlier today
— glassnode alerts (@glassnodealerts) September 21, 2020
Ethereum mean transaction volume has also seen a rather substantial decrease in the last 24 hours. At the time of the press, it is down 25.4 percent and totals 9.099 ETH.
There’s an Increase in the Number of ETH Non-Zero Wallets
In spite of the negative reports already mentioned, Glassnode also posted some good news about Ethereum: the number of non-zero ETH wallets has increased to an unprecedented high of 47,185,555.
In addition, the number of ETH wired to various crypto exchanges has grown throughout the past 24 hours, and at the moment, this metric shows a 39 percent increase – 864.792.
Still, because ETH exchange balances are in an evident decline, it is, most probably, suggesting that users are sending their Ethereum to DeFi platforms and locking them in smart contracts for yield farming.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.