$ 1.2 billion withdrawn from the exchanges – a driver of the ETH price to $ 10,000?

In the past 24 hours, more than $ 1 billion in ether has been withdrawn from the exchanges, fueling speculation that the largest altcoin is making big profits due to the reduced supply.

According to IntoTheBlock, $ 1.2 billion in ether was withdrawn from exchanges on September 16, setting a new record for short-term outflows from exchanges.

The analytics platform found that the price of ether rose 60% in 30 days after pulling $ 1 billion off the exchanges in April.

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However, the situation has changed since April: The London hard fork last month introduced a burning mechanism into Ethereum’s fee market that is creating increased deflationary pressure on Ether.

At the time of writing, over $ 1.1 billion worth of 309,505 ethers have been burned since EIP-1559 went live in 42 days. As a result, Ether has been retired at the rate of approximately 5.05 ethers (18,061) per minute, or $ 26 million per day, since the upgrade.

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“The supply of ether on the stock exchanges continues to decrease and the price continues to rise. $ 10,000 preprogrammed. ”

Lark Davis also revealed 4 more compelling fundamentals-related reasons that could propel ETH to $ 10,000 including:

• The first is that there isn’t much resistance to the upside for Ether at the moment. In particular there is more than 10 million tokens was purchased between $ 3,426 and $ 3,536. This is a very important bow wall that acts as a support.
• Second, Arbitrum, the Layer 2 scaling solution for Ethereum, grows to hit the $ 3.4 billion milestone in TVL.
• Third, the amount of ETH locked in staking contracts increased, reaching 7.682 million ETH.
• Last but not least, ETH is attracting growing institutional interest, outperforming large funds and Bitcoin.

In the booming NFT market, OpenSea is the best DApp from Ethereum according to the burn rate and makes up over 14% of all ethers withdrawn from the offer, second place is Uniswap V2 with 5.5%, Tether with 4.9% and Axie Infinity with 3%.

Bitcoin has also seen steady outflows from the exchanges since peaking at 17% supply in May.

According to on-chain analytics firm Glassnode, the amount of Bitcoin held by exchanges has dropped to its lowest level since February 2018.

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Teacher

According to Cointelegraph

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