People think that the price of Ether will go up soon because about $1 billion worth of Ether has been taken off controlled exchanges in the past 24 hours.
According to IntoTheBlock, a crypto analytics business, $1.2 billion worth of ETH flowed out of exchanges on Thursday, setting a new daily record for outflows.
The price of Ether increased by 60 per cent in the 30 days after $1 billion was withdrawn from centralized trading platforms in April.
However, things have changed since April. The London upgrade from last month, which added a burn mechanism to Ethereum‘s fee market, made the effect of deflation on the supply of Ether even stronger.
According to Ultrasound Money, in the 42 days since Ethereum Enhancement Proposal 1559 went live, 309,505 ether, worth over $1.1 billion, had been burned. Since the upgrade, the amount of Ether in circulation has decreased by about $5.05 ETH ($18,061) per minute, or $26,000,000 per day.
The market for non-fungible tokens is booming. More than 14% of Ethereum has been taken out of circulation through decentralized applications; the next highest is Uniswap v2 at 5.5%, Tether at 4.9%, and Axie Infinity at 3%. Ether transfers were responsible for 8.7% of all Ethereum burns.
Also, since the peak in May, when 17% of the supply was in centralized trading venues, bitcoin has been steadily moving away from them.
Glassnode, an on-chain monitoring startup, claims that BTC reserves at centralized exchanges are at their lowest point since February 2018.