The vast amount of Ether is being transported to centralized cryptocurrency exchanges which leads to Ethereum’s crucial technological overhaul, The Ethereum Merge.
Concerning The Ether Price
There is a concern among the crypto community that ether (ETH) price will plunge due to the influx of the currency into exchanges.
Late Wednesday, Nansen’s CEO Alex Svanevik tweeted that 450,000 ETH worth $720 million were deposited at Binance and Bitfinex received 288,442 ETH worth $490 million.
“Huge inflow to exchanges coming from: 1) Nexo: 450,000 ETH to Binance. 2) Multisig owner: 288,442 ETH to Bitfinex. That’s $1.2B in two transactions,” tweeted the CEO.
The Largest Inflows in 6 months
ETH in centralized exchange wallets has surged to a two-month high of 25.34 million and with cumulative inflow of $1.2 billion, marking the highest number in six months.
“Highest exchange inflows in 6 months. Thanks, Svanevik, for alerting. Again be careful,” said one Twitter users.
Outflows usually indicate long-term holdings, while influxes are typically taken to indicate investor sales intentions.
Alex Kruger, a trader and analyst, said that very high inflows indicate a lower market. Hal Press, founder of North Rock Digital, tweeted this week that the two inflows are more likely to be caused by the fork than a predetermined sell program.
“The massive exchange inflows are primarily these two addresses. IMO this is likely fork related rather than a predetermined sell program,” said Hal Press.
Maybe coins were transferred to exchanges in order to collect ETHPOW tokens on exchanges, so they could be liquidated immediately instead of collecting them in hardware wallets.
In addition, Hochan Cheung, head of marketing at Korea-based analytics firm CryptoQuant, reported the coins have been moved to derivative exchanges, which indicates investors are hedging their positions in case of price volatility around the Merge.