Users withdraw Ethereum from exchanges

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ETH reserves of cryptocurrency exchanges continue to decline rapidly. This is evidenced by the on-chain statistics of the IntoTheBlock service. According to the indicators, the total outflow of the second altcoin in terms of capitalization from crypto exchanges over the past week amounted to 528,040 ETH.

Source: intotheblock.com

On an annual basis, as you can see in the chart above, most of the operations were aimed at withdrawing cryptocurrency. The only noticeable exception was May 19 and 23, when the total inflow amounted to 663.5 thousand ETH. For the rest, as a rule, exchange reserves recorded the outflow of ETH.

However, as Glassnode analysts found out, the outflow of cryptocurrency did not lead to an increase in the volume of ETH to the decentralized finance (DeFi) market. The aggregate activity for COMP, AAVE, UNI and YFI DeFi tokens has dropped significantly over the past month.

Source: glassnode.com

Moreover, the number of daily trading transactions on Uniswap fell 28% from the peak reached in mid-May. This may indicate a drop in demand for tokens. The daily number of trades on Uniswap has returned to its long-term base level of 160k / day. The continued withdrawal of ETH from exchanges and the lack of activity in the DeFi markets may indicate uncertainty in the market. At least this is hinted at by the fall of the hype in the Ethereum blockchain network.

Previously, analysts at Santiment found out that fees on the Ethereum network fell to the level of January 2021, along with a drop in exchange-traded deposits. The activity on the ETH network is still high compared to the beginning of the year, but every day fewer addresses are moving cryptocurrency to exchanges, experts noted.

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