The number of Ethereum Ether (ETH) tokens held on exchanges has plummeted to the lowest level since 2018, specifically the amount of ETH worth nearly $ 1.61 billion has disappeared from Crypto exchanges. year-to-date, right before the protocol’s full potential merger into Proof-of-Stake in the summer. However, investors still expect the price to grow strongly in 2022.
In particular, nearly 550,000 ETH – worth nearly $ 1.61 billion has left centralized exchanges, according to information provided by Glassnode. The chart shows that this has been done for a long time as the downtrend throughout 2021 shows no signs of stopping. The massive outflow reduced the exchange’s net Ether balance to 21.72 million ETH, down from a record high of 31.68 million ETH in June 2020.
Then what is the cause? First, there is the rise of decentralized finance. A large portion of Ethereum leaves centralized trading platforms often towards decentralized trading where users can put their coins to work for them and earn passive income. Services such as staking and profit farming have become the order of the day when investors can keep their funds and earn substantial profits from them at the same time.
Another reason is the increase in optimism among investors. Multiple rallies have proven the crypto market’s capabilities. Investors have found that they have a better chance of getting a return when they hold their money. In addition, the cryptocurrency market is still said to be in its early stages. Therefore, investors are hoarding money to wait for more favorable market times.
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