Within the past 24 hours, over $1.3B worth of ETH has been withdrawn from crypto exchanges. Thus, it is likely that the ETH price is about to rise since there would be a shortage of supply at the exchanges.
ETH Supply At Crypto Exchanges
IntoTheBlock data showed that centralized exchanges dispensed over $1.3B worth of ETH yesterday, which was an unprecedented record in the asset’s history. The crypto analytics firm remarked that the price of the second-largest digital asset jumped by 60% within a month following the withdrawal of $1B from exchanges earlier in the year.
But the cause of this current withdrawal is different from that time. In August, ETH underwent a significant upgrade which involved burning some of the ETH supply in circulation. As of this writing, about 309,510 ETH have been burnt after the upgrade based on data from ultrasound money.
Hence, it is estimated that there is an average reduction of 5.06 ETH per minute following the implementation of the EIP-1559 proposal. That figure represents a loss of about $26.5m worth of ETH daily. The amount of ETH burnt from the OpenSea NFT market platform is the highest among the use cases.
14.5% of ETH on OpenSea have been burnt, while Axie infinity, Uniswap v2, Ether transfers, and Tether represent the highest percentages of ETH burned from other projects. After reaching a peak supply four months ago at 18%, there have been regular withdrawals of BTC from exchanges. Glassnode data suggest that the current supply of BTC at the exchanges is the lowest in three years.
ETH Price Eyes More Gains
Ethereum surpassed short-term MAS at the $2,438 range to embark on a rally towards its next key resistance around $2,700. Also, top crypto traders (such as Peter Brandt and Raoul Pal) predict that ETH is holding out for a possible run towards the $6,600 range based on the token developing the cup and handle pattern.
This pattern is typically known to lead to a strong rally for any asset. The analysts suggest that once ETH surpasses its next key resistance, it will be on its way towards the $6,500 mark. However, it is bound to encounter some price corrections along the way.
FinTech Giants Allow UK Clients To Make Crypto Transactions
Popular FinTech payment behemoth, PayPal, has revealed that its UK users can now perform digital asset transactions (for BTC, BCH, ETH, and LTC) from their PayPal accounts. The payment settlement giants started offering crypto transactions late last year and began by allowing its US users to perform crypto transactions. While it initially announced that other global users would perform crypto transactions earlier this year, it later rescinded that decision.
However, the company announced last month that UK users would be allowed access to the same crypto features as their US counterparts. A top executive in PayPal’s blockchain sector said, “our core mission at PayPal is to be at the forefront of the global finance revolution, and we will continue to make all efforts in achieving that goal.”