Blockchain analytics firm Glassnode says that activity on the Ethereum network is surging amid the second-largest crypto asset by market cap breaking staggering all-time highs above $3,500.
In its weekly report, Glassnode reveals that ETH holders are actively moving their coins from centralized exchanges and holding them in their own wallets, suggesting that a supply crunch could be driving Ethereum’s massive rallies.
“This week a relatively large volume of ETH was removed from known exchange wallets, spiking to over 200k ETH in a single day. The chart below demonstrates that in 2021, there have been 10 such occurrences with withdrawals of over 200k ETH/day. This compares to only two days with exchange inflows over 200k ETH per day indicating a general preference for self-custody of funds.”
The report says that exchanges now hold only 12% of the total ETH supply, while smart contracts have 22.8%, indicating soaring interest in the decentralized finance (DeFi) space.
“The almost equal and