The ETH balance decline began in September 2022, dropping significantly in November and December after the downfall of FTX. This has been a concerning trend for the Ethereum community, as it indicates a potential loss of confidence in the platform and its underlying technology. Here are some of the most important things to know about this decline:
1. The decline started in September 2022: According to data from Glassnode, the ETH balance on exchanges began to decline in September 2022. This was a gradual decline at first, but it became more pronounced in the following months.
2. The decline accelerated after the downfall of FTX: In November and December 2022, the ETH balance on exchanges dropped significantly. This coincided with the downfall of FTX, a major cryptocurrency exchange that suffered a hack and lost millions of dollars worth of assets.
3. The decline may be a sign of changing market conditions: Some analysts believe that the decline in ETH balances on exchanges may be a sign of changing market conditions. As more investors move towards decentralized finance (DeFi) platforms and other alternatives to centralized exchanges, the demand for ETH on exchanges may be decreasing.
In summary, the decline in ETH balances on exchanges is a concerning trend for the Ethereum community. While it may be a sign of changing market conditions, it also raises questions about the platform’s long-term viability and the confidence of investors in its underlying technology. As the cryptocurrency market continues to evolve, it will be important to monitor this trend and its potential impact on Ethereum and other cryptocurrencies.