Coin flow can tell a lot about the movement of coins and tokens through the cryptocurrency market and how investors react to the market. But does the latest data really match what is happening on the exchange?
Let ETH see this.
According to Glassnode’s weekly coinflow update, Bitcoin and Ether investors are taking very separate paths to asset management.
🚨 Weekly On-Chain Exchange Flow 🚨#Bitcoin $BTC
➡️ $8.6B
⬅️ Spend $8.3B
📈 Net Flow: +$280.7M#Ethereum $ETH
➡️ $4.8 billion
⬅️ Spend $5.7B
📉 Net Flow: -$952.9M#rope (ERC20) $USDT
➡️ $5.2 billion
⬅️ Spend $5.4B
📉 Net Flow: -$193.3Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) May 23, 2022
As a whole, Bitcoin saw an inflow of around $280.7 million, while Ether saw an outflow of $952.9 million.
But does the exchange’s ETH supply support this? According to data from Santiment, the exchange’s ETH supply has been increasing since the end of April.
source: Santiment
BTC, on the other hand, recorded a re-entry of the coin to the exchange as its price fell in early May, but this trend did not last. Coin made a quick U-turn and quickly started to depart from the exchange again.
source: Santiment
Another factor to consider is the weighted role of sentiment in relation to ETH. Ethereum investors recently experienced a spectacular surge as the May 16 high fell below the psychological price of $2,000. Since then, sentiment has been largely negative, which could actually help ETH rise once again.
source: Santiment
At the time of the report, ETH was $2,070.27.
However, one area of concern is the development activity of Ethereum. This indicator has soared since late April. However, compared to development activity in 2020 and 2021, the decline is undeniable.
BTC-ing more than you can chew
So, what should you know about Bitcoin and Ether right now? After the collapse of the Terra ecosystem, more adventurous altcoin investors are likely to question their favorite projects. In addition, many may have chosen to retreat to the relatively safe Bitcoin as fear reigns over the market.
Ethereum Fear And Greed Index Is 24 — Fear
Current price: $2,036https://t.co/lRuGS6T0Hdhttps://t.co/FHpB0kv0ho pic.twitter.com/3O47WC14pn— Ethereum Fear and Greed Index (@EthereumFear) May 23, 2022