Interest in cryptocurrencies continues to rise. And it is that, it is not only the increase in the price of Bitcoin that has led investors from all over the world to take an interest in this sector. If not, other cryptoassets such as Ethereum and Binance Coin have also had much of the attention of the media and investors. What appears to be confirmed by the news that a billion dollars worth of Ethereum is leaving Coinbase, in what some analysts see as an accumulation move by institutional investors.
The rise of Ethereum
Everyone knows the history of Bitcoin and how in recent months the cryptocurrency has managed to increase its price quickly. Generating headlines around the world, and attracting the attention of people in all countries, who have launched to buy BTC as a short and long-term investment.
However, what not everyone knows is that, in percentage terms, the rise in the price of Bitcoin has not been the strongest in the crypto world in the last year. On the contrary, the second cryptocurrency in the world by market capitalization, Ethereum, has also had its good part of prominence. After increasing its price from $ 144 at which it was trading a year ago to $ 2,088 at the time of writing this article.
An increase in its price that has been driven by the vertiginous rise of decentralized finance (DeFi) in the world of cryptocurrencies. With millions of dollars being invested in projects that, like Uniswap, are hosted on the Ethereum blockchain, making it more attractive to investors. Including those who withdrew a billion dollars worth of ETH from the Coinbase exchange.
What happened on Coinbase?
Thus, through your account TwitterCryptoQuant CEO Ki Young Ju has commented that 400,000 Ethereum tokens, equivalent to a billion dollars, left the Coinbase exchange. In a move that for the group seems to indicate the willingness of institutional investors to save on Ethereum. Withdrawing it from an exchange where they could change them quickly, to store them in a more secure place.
«A few days ago 400,000 ETH came out of Coinbase. Speculative assumption, institutions are now buying ETH».
This further matches the findings of cryptocurrency analytics firm Santiment. It recently revealed that at least 68% of the total supply of Ethereum in the world is in the hands of large investors:
«When Ethereum rallies above $ 1,685 today for the first time in 10 days, whales (who own more than 10,000 ETH) now own 68.6% of the total supply. This is the highest percentage of whale ownership since November 2017».
In this way, one of the most important trends within the crypto world in recent years would be confirming. With the arrival of large institutional investors as major players in the cryptocurrency ecosystem.