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According to Glassnode, Bitcoin investors have been transforming BTC to Ether in May.
According to Glassnode, an on-chain analytics provider, the value of Ethereum on exchanges has dropped to the lowest level in nearly two years.
According to Glassnode, only 13.3 million Ether is currently carried on centralised exchanges, the lowest level since June 2019. As a result, centralised exchanges retain about $52.4 billion in ETH, or 11.5 percent of Ethereum’s total stock.
— glassnode alerts (@glassnodealerts) May 10, 2021
Since peaking at 19 million ETH in September 2020, the number of Ether on centralised exchanges has dropped by 30% in 9 months.
A low ETH balance on exchanges is generally regarded as positive for the markets, as it results in a decrease in supply compared to demand on common trading platforms. Dwindling exchange accounts indicate that long-term holders are putting their money in safekeeping or locking up their funds to earn yields by decentralised finance protocols or staking.
In its Monday “Week on Chain” report, the data provider also noted that there has been some reduction in exposure to Bitcoin in favour of Ethereum.
Glassnode correlated the purchasing activity of relatively old Bitcoin unspent transaction outputs ranging in age from 6 months to 3 years, discovering proof that long-term buyers might have recently flipped into ETH:
“Whilst this is only an empirical observation (correlation causation), the distinct increase in these older BTC being spent back into circulation after a prolonged period of holding makes a compelling case.”
According to the study, on-chain activity for Ethereum has risen considerably over the last four weeks as a result of Ether’s latest bullish price behaviour. After the beginning of the year, the overall number of smart contract calls, Uniswap transfers, and monthly transactions have all increased significantly.
This week, daily purchases reached an all-time high of 1.63 million, a 22.5 percent rise over the previous record in December 2017.
At the time of publishing, Ethereum prices were just under $3,900, down from their previous all-time peak of $4,220 on May 10.