New Diar Crypto Research: Massive, Mysterious Influx of ETH Deposits into Exchanges
There Has Been A Massive, Mysterious Influx Of ETH Deposits Into Exchanges Over The Last Two Weeks
Cryptocurrency exchange wallets are some of the biggest wallets in the crypto community. Over the last two weeks of November, some of the world’s largest exchange wallets experienced a mysterious surge of ETH trading activity.
As reported by Diar, there was a massive increase in ETH deposits and withdrawals over the last two weeks of November:
“88 Ethereum addresses belonging to exchanges saw a massive upswing in the last two weeks of November. 470K Net have been withdrawn from the exchanges after seeing deposits reach 16Mn ETH.”
Diar was citing a report by TokenAnalyst, which tracks exchange wallet activity and massive wallet transfers in the crypto space. TokenAnalyst uses a proprietary intelligence engine to detect anomalies in the crypto community – like sudden coin movements from whales or large transfers of cryptocurrencies. The proprietary engine spotted the unusual exchange activity as the month of November drew to a close.
One of the neat things about crypto is that some of the biggest wallets can be viewed by anyone on the blockchain. You can view some of Satoshi’s bitcoins, for example, including bitcoins that were mined in 2009 and never moved. You can view the multi-billion dollar wallets of cryptocurrency exchanges and early bitcoin adopters.
Some of the largest wallets have been publicly connected to major cryptocurrency exchanges, and analysts like TokenAnalyst scan these wallets to glean crucial information about the world of crypto. With this latest incident, 88 major crypto exchange wallets experienced a surge in activity – which seems unusual given the prolonged bear market in which we’re currently sitting.
What Does It Mean?
It’s unclear what this activity means – if anything. Cryptocurrency prices sunk throughout the month of November. Bitcoin closed the month at a loss for the fourth straight month – something bitcoin hasn’t done since 2014. Other cryptocurrencies experienced similar losses.
The price of ETH, meanwhile, is near its one-year low. As we go to press, ETH is sitting at a price of $109 USD, down 7% on the day. Over the last month, ETH has fallen from its perch as the second largest cryptocurrency by market cap. Today, ETH sits in the number three position behind XRP, which has remained surprisingly stable despite plummeting crypto prices.
One possibly reason for the surge in ETH trading volume could be the surge of overall crypto trading volume from November 14 to November 30. In the days preceding that period, there was typically less than $4 billion of bitcoin trading each 24 hour period. Between November 14 and November 30, however, there were 10 days where bitcoin trading volume rose above $6 billion in 24 hour periods.
Is the unusual exchange activity a sign of ETH traders liquidating assets and limiting their losses? Or is this activity just long-term hodlers buying ETH at a discount today in the hopes that it will go up in the future? It’s unclear – but the wallets linked to the world’s largest exchanges will continue to be watched very closely.