As a report has it, 400,000 ETH worth over $800 million left Coinbase, the largest US-based cryptocurrency exchange a few days ago. And speculation is attributing the major outflow to the increase in the institutional demand for ETH.
Over the past couple of months, there has been an increase in the inflow of money into the crypto industry, especially for the two largest crypto assets by market cap, Bitcoin (BTC) and Ethereum (ETH). And the majority of these inflows are said to have come from institutions and notable corporations.
400,000 ETH Worth Over $800 Million Left Coinbase
According to the CEO of CryptoQuant, Ki-Young Ju, in a tweet on 2nd April 2021, the sum of 400,000 Ethereum (ETH) worth over $800 million left the top crypto exchange, Coinbase, a few days ago.
In the tweet, Ki-Young Ju averred that the huge transfer of funds was likely driven by the increase in the institutional demand for Ethereum (ETH), the second-largest digital currency by market capitalization.
“400,000 ETH flowed out from Coinbase a few days ago. Speculative guess, institutions are now buying ETH.”
400k $ETH flowed out from Coinbase a few days ago.
— Ki Young Ju 주기영 (@ki_young_ju) April 2, 2021
Institutional Demand for Crypto on the Increase
In early 2021 according to Daily Hodl, the world’s largest crypto asset manager, Grayscale revealed in the first quarter of 2020 that 93% of all its capital inflows were from institutions.
According to Grayscale, the average weekly investment into its Ethereum Trust during the same period was $26.3 million.
On 7th March 2021, the crypto analytics firm, Santiment, also disclosed that Ethereum whales that hold more than 10,000 ETH control 68.8% of the cryptocurrency’s supply.
Santiment tweeted, “As Ethereum rebounded above $1,685 today for the first time in 10 days, whales (owning 10,000+ ETH) now own 68.6% of the total supply. This is the highest % owned by whales since November, 2017. 10-10,000 addresses meanwhile, own the lowest % since September, 2017.”