Nearly $600 million worth of Ethereum (ETH) has left crypto exchanges this weekend. Crypto analysts call the outflow the biggest in almost 2 years.
ETHs Leave Crypto Exchanges
Crypto analytics firm Santiment reported a massive outflow of 224,410 ETH from crypto exchanges on February 8 and 9.
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More than $596 million worth of ETH was withdrawn, marking the largest single-day outflow in nearly two years and a “historic milestone,” according to Santiment.
Typically, a decrease in ETH on exchanges signals increased investor confidence and reduces the risk of sudden price drops, which is a bullish indicator for the asset.
However, while this metric doesn’t provide an immediate price signal, it points to a longer-term trend and lowers the likelihood of a price decline, Santiment notes.
“Though more of a long-term metric, this is a strong sign for Ethereum’s struggling price,” the post stated. “The shrinking level of available coins to be publicly sold off also reduces the chances of future major selloffs.”
Ethereum ETFs Show Inflows
At the same time that exchanges recorded significant Ethereum outflows, the opposite trend dominated in ETH exchange-traded funds (ETFs).
On February 10, all major ETH ETFs saw a 4% increase, with nearly $7 billion in inflows.
BlackRock’s ETHA and Fidelity’s FETH led the way, attracting $4.42B and $1.51B in capital inflows, respectively.
Grayscale’s ETHE, however, was the only one to report $3.95 billion in outflows, according to SoSoValue’s data.
At the time, Ethereum’s price hovered at weekly lows, trading around $2.6K after dropping from $2.8K on Friday.
Shift in Community Attention
Still, Santiment analysts observe that interest in Layer 1 chains, including Ethereum, is currently rising.
“The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano,” Santiment says.
According to them, top Layer 1 assets now make up 44.2% of discussions about specific coins, while interest in meme coins like Dogecoin, Shiba Inu, and Pepe is declining on social media.
The analysts view this shift in trader focus from meme coins to Bitcoin and Layer 1 assets as an indication of a more stable and sustainable market environment.
“There will be plenty more opportunities to capitalize on bullish momentum from meme coins, but the decreased discussion rates show that we are in a healthy cool-down period,” Santiment notes.
Why This Matters
Ethereum continues to trail Bitcoin this cycle, failing to outperform it in value growth. Analysts anticipate an altcoin rally once Bitcoin peaks and its market dominance declines.
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