The number of ETH on exchanges is falling, and large investors are accumulating bitcoins

The volume of native tokens of the Ethereum network held on exchanges continues to decline and has already reached its lowest level in the last two and a half years. At the same time, the number of blocked ETH in Ethereum 2.0 staking has updated a new important bar the day before.

At the same time, the movement of bitcoins on the network also demonstrates the dynamics of accumulation among large crypto wallets, which indicates a possible growth of the market in the near future.

What is happening on the cryptocurrency market in recent days seems to be quite positive. In particular, some projects from the top of the list of coins by market cap are showing growth on a daily and weekly scale.

The record holder here was the Uniswap decentralized exchange token UNI, which showed 26% growth in seven days. Ethereum, BNB and Cardano also showed good results.

The total capitalization of the coin industry exceeds $ 1.5 trillion. Of these, 43.2 percent of the indicator falls on Bitcoin, and 18 percent on Ethereum.

cryptocurrencies capitalization

Cryptocurrency market capitalization chart

What is especially important: Bitcoin has stopped practicing sharp large-scale crashes and is now sinking more smoothly. In general, the last few days, BTC has been holding above 33-34 thousand dollars.

bitcoin chart rate

Bitcoin price chart for the last days

Other factors point to the improvement in the coin industry. Here are the details of what is happening.

When will cryptocurrencies start to rise?

ETH reserves on centralized exchanges have plummeted over the past few days, according to analytics platform CryptoQuant – especially compared to the market crash in mid-May. Now this figure is at a minimum in 2.5 years. This is a potentially bullish scenario for cryptocurrencies: the fewer coins there are on exchanges, the less they will be sold. Therefore, if demand rises, the price of ETH should also increase, CryptoPotato reports.

Cryptocurrency trading chart

Reduction in the number of ETH on exchanges against the background of the price of cryptocurrency

Note that holders can withdraw ethers from the exchange for different purposes. The most obvious of these is storing cryptocurrency on a hardware wallet like a Ledger, which holds the private key securely and does not shine on the Internet. In addition, such devices ask for confirmation in the form of a password for each operation, which means that it will simply not be possible to transfer coins from their address without a connected wallet.

Ether can also be used to work with decentralized applications – also known as DeFi protocols. We have clarified the latest data: now the most popular among representatives of this category is the Uniswap decentralized exchange, with which we have already got acquainted.

Popular applications can be identified by the amount of gas consumed, which is needed to conduct transactions and interact with smart contracts. Here is the current rating of Ethereum-based projects that spent the most gas.

ethereum app progarmma

Most Popular Apps on the Ethereum Network

Many analysts associate the fall in the volume of reserves with the high expectations of cryptocurrency investors regarding the transition of the project to the Proof-of-Stake algorithm. Now more and more Ether holders are transferring their coins into a special deposit smart contract for subsequent participation in the life of the project network in the role of validators and receiving passive income.

This material will help you understand the meaning of staking, the details of the Eth2 update and the role of validators. We recommend that you familiarize yourself in order to better understand what is happening in the cryptocurrency niche.

What about Bitcoin? The demand for the main cryptocurrency has increased dramatically over the past couple of days: in just one day, large crypto wallets have accumulated about 60 thousand BTC , which is the largest accumulation of coins this year. Experts on the Santiment platform also noted a sharp increase in the volume of bitcoins on whale wallets – large addresses with a value of 100 to 10,000 BTC .

Such addresses now hold at least 9.12 million bitcoins – which is 100 thousand more than a month and a half ago.

BTC shopping also speaks of the optimistic expectations of crypto enthusiasts regarding the future of the coin. Actually, its growth may well begin this month, since July is traditionally considered a good period for Bitcoin. In its entire history, only two years (2012 and 2019) brought losses to investors in July.

Note that historical events do not guarantee anything, but they can be repeated. Therefore, one should not evaluate them as the only possible scenario for the development of the situation.

Bitcoin crypto profitability table

Bitcoin profitability by different months

We believe that the climate within the cryptocurrency market has improved markedly over the past few weeks. Coins have stopped dropping too sharply, which is why investors are gradually converting their dollar stablecoins into other coins. This affects their growth and provokes a further increase in rates. I would like to hope that nothing will interfere with this process in the near future.

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