- Bitcoin and Ethereum witness substantial net outflows from exchanges.
- While $310 million ETH entered exchanges, a staggering $1.1 billion was withdrawn.
- USDT saw $809 million in exchanges, while only $630.4 million was withdrawn.
In a recent on-chain exchange flow report, data from Glassnode shows that Bitcoin (BTC) and Ethereum (ETH) witnessed significant net outflows from crypto exchanges. At the same time, the popular stablecoin Tether (USDT) experienced an influx of funds.
The report indicated that Bitcoin saw $661.2 million flowing into exchanges within 24 hours, but a higher amount of $797.8 million was withdrawn, resulting in a net outflow of negative $136.5 million.
Daily On-Chain Exchange Flow#Bitcoin $BTC $661.2M in $797.8M out Net flow: -$136.5M#Ethereum $ETH $310.7M in $1.1B out Net flow: -$821.8M#Tether (ERC20) $USDT $809.5M in $630.4M out Net flow: +$179.0Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) May 27, 2023
This negative net flow suggests that investors and traders are moving their Bitcoin holdings away from exchanges, possibly for long-term storage or alternative investment opportunities.
On the other hand, Ethereum, the second-largest crypto, experienced an even more pronounced outflow. Approximately $310.7 million entered exchanges, but a staggering $1.1 billion was withdrawn, leading to a significant net flow of negative $821.8 million.
This heightened movement of Ethereum off exchanges could indicate a shift towards DeFi platforms or other projects built on the ETH blockchain. A crypto community admin and trader commented that the ETH outflow implies that the number of ETH token stakes increased sharply.
Contrary to the trend in Bitcoin and Ethereum, Tether, the leading stablecoin pegged to the US dollar, witnessed a positive net flow. The ERC20 variant of USDT attracted $809.5 million into exchanges, while only $630.4 million was withdrawn, resulting in a net inflow of positive $179.0 million.
The increased demand for Tether could reflect market participants seeking stability amidst the recent volatility in other cryptos. Ultimately, the on-chain exchange flow data from Glassnode highlights the ongoing market dynamics and investor sentiment within the crypto ecosystem.
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