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Crypto Exchanges Record $3 Billion Ethereum Outflows Since ETF Approval

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Centralized crypto exchanges have witnessed over $3 billion outflows in Ethereum (ETH)). These outflows began with the approval of Ethereum Spot ETFs on May 23.

CryptoQuant data reveals that the amount of Ether stored on exchanges dropped by around 797,000 ETH between May 23 and June 2.

Interestingly, the total outflows have a combined value of $3.02 billion.
Usually, investors move their coins to self-custody for other purposes, such as ETFs, rather than selling immediately.

Such moves typically deplets exchange reserves, leaving fewer coins available to buyers.

Massive Outflow of Ethereum Tokens Recorded on Centralized Exchanges
Glassnode data reveals the percentage of circulating Ether held on exchanges are at the lowest level since 2021.

Notably, the percentage of Ether supply currently held by exchanges has declined by 10.6% since January 2021.

Bitcoin on-chain
Source: X

According to BTC-ECHO analyst Leon Waidmann, the exchange balances for both Bitcoin and Ethereum have dropped to their lowest level in years.

Also, whales continue to accumulate more Bitcoin and Ethereum from exchanges.

Given this aggressive accumulation, the analyst believes a supply squeeze is coming where demand will be higher than supply.

If this happens, it will likely lead to a price surge for Bitcoin and Ethereum, the top two cryptocurrencies.

Also, Bloomberg ETF analyst Eric Balchunas believes that the Ether ETFs can launch by late June.

Once the spot ETH ETFs go live, the accompanying demand could propel Ether above its November 2021 all-time high value of $4,870.

Besides the massive whale accumulation, the Ethereum network has achieved a significant milestone, with the largest staking transaction ever recorded.

Etherescan data reveals that $500 million worth of ETH was staked.

The increased activities on Ethereum likely indicate high investor interest and a possible price surge ahead.

Analysts Bullish on Ethereum’s Growth Potential

Meanwhile, DeFi report crypto analyst Michael Nadeau believes in Ethereum’s potential.

According to Nadeau, Ether is a viable option for the growth of Web3, while Bitcoin is digital gold.

Grand View Research data reveals that the Web3 industry is set to realize an annual revenue of $33.5 billion by 2030.

Given this anticipated expansion, Nadeau believes Ethereum has a much larger addressable market than Bitcoin.

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