ETH exchange inflow increased 116% ahead of spot ETF launch

Ethereum has seen increased exchange activity as investors wait for spot exchange-traded funds to begin trading in the United States.

According to data provided by Santiment, the amount of Ethereum (ETH) flowing into centralized and decentralized exchanges increased by 116% in the last 24 hours, from 118,970 tokens to 257,550 tokens.

ETH price, activity on the exchange, supply on exchanges and idle circulation – July 23 | Source: Santiment

This move is usually expected in bearish market conditions, but the approval of spot ETH ETFs has triggered a rather similar momentum on-chain as investors can focus on short-term profits.

Data from the market intelligence platform shows that Ethereum exchange outflow also witnessed a 69% increase in the past day — from 121,460 to 205,460 tokens. While the outflow indicates an accumulation trend, rising inflows indicate potential short-term profit taking.

According to data from Santiment, the total supply of ETH on exchanges has increased by 1.2 million coins in the last 30 days, from 18.41 million ETH on June 24 to 19.61 million ETH at the time of reporting.

This was largely due to the bearish momentum in the market at large, which pushed the Ethereum price from $3,500 to around $2,800 in the first week of July.

On the other hand, long-term Ethereum holders stopped moving their assets after a busy Monday, July 22. According to Santiment, five-year dormant ETH circulation fell from 16,888 to 3,022 coins in the last day.

At this point, five-year ETH holders remain bullish on the second-largest cryptocurrency thanks to the green light given by the US SEC to a spot ETH ETF. According to a Crypto.news report, the investment products will start trading today, July 23.

Ethereum is up 1.3% in the last 24 hours and is trading at $3,530 at press time. The asset has a market cap of $424.3 billion and a daily trading volume of $21.5 billion.