June 18, 2024

Ethereum outflow from crypto exchanges speaks of upcoming asset growth

Ethereum outflow from crypto exchanges speaks of upcoming asset growth

According to Decentral Park Capital senior analyst Elias Simos, for the first time since May this year, Ethereum (ETH) recordednet outflow from exchanges after the recovery of the cryptocurrency market and Ethereum prices.

A net outflow of funds means that investors withdraw funds from cryptocurrency exchanges either to personal wallets or to cold wallets for the safe storage of assets.

Often, a net outflow of assets such as ETH occurs when investor confidence in the short and medium term grows.

Since September 1, in less than three weeks, the price of Ethereum has risen from $ 165 to $ 217, adding more than 31% against the US dollar.

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According to analysts, including Set Protocol product marketing manager Anthony Sassano, the Ethereum blockchain protocol has seen an increase in usage.

Ethereum outflow from crypto exchanges speaks of upcoming asset growth

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September 16, the Ethereum network processed a recorda high number of transactions and smart contracts, which indicates that, despite an 85% decrease relative to the historical maximum, the use of ETH is constantly growing.

“Ethereum has surpassed Bitcoin in dailycommissions. What’s even more astonishing is that the fees paid on other blockchains don’t even come close to matching those of Bitcoin and Ethereum, indicating virtually no demand for these platforms,” &#8212; Sassano noted.

Strong short-term ETH trend supportedfundamental factors, such as increased network usage and daily payments, however, it is believed that the main catalyst for the Ethereum price spike was a sharp decline in mid-2019.

The lowest figure of 2019 for Ethereum &#8212; $80, while during the first two quarters of the year the price hovered around $100.

The fall of 93% from a record high of $ 1,448 to $ 100 led to the fact that the price of Ethereum showed oversold.

When Ethereum recovered above $ 190, which became a rather difficult level of resistance for cryptocurrency, it quickly made its way to establish a monthly maximum.

In 2020, Ethereum expects to release its version 2.0, and, as a result, increase scalability, which will provide a more comfortable environment for both developers and users.

At the Ethereal conference, Ethereum co-founder Vitalik Buterin stated:

“The first step of version 2.0 is completed, with the exception of certain cases that arise during security audits. Now customers are talking to each other.

Next step &#8212; make sure it's possiblesupport public network scaling. In this case, we are talking about hundreds of thousands of potential validators, combining a huge number of transactions.”

It is likely that users' anticipation of release 2.0, a marked increase in network usage, and Ethereum price recovery are fueling a short-term cryptocurrency momentum.

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