Ethereum users have started to attract ETHs they hold on central exchanges to different wallet addresses. According to CryptoQuant data, the ETH reserve of the exchanges has dropped to the lowest level in the last 2 years.
Ethereum holders pulled more than 235,000 ETH from central cryptocurrency exchanges on March 16. As of March 18, around 20 million Ether is held in stock market reserves, which have shrunk since the beginning of March. CryptoQuant announced this as the bottom of the last 2 years.
The number of daily transactions continues to increase
As the volume of transactions on the Ethereum network shrinks, the number of daily transactions continues to increase. Calculating over the 7-day moving average, The Block announced on March 18 that 1.3 million transactions were made within the network. The number of active Ether addresses is 524,530.
While the shrinking of the coin reserves in the exchanges may mean that the selling pressure may decrease, these ETHs are likely to be sent to DeFi platforms. Dune Analytics announced that around 3.5% of active addresses are DeFi users.