Massive ETH holdings have been moved into exchanges as the shakedown continues for the Ethereum community. ETH holdings worth around $2.1 billion were transferred to exchanges over the past week with investors under increasing pressure. Ethereum has started the new month poorly and is down again after under-performing across May.
Not clicking very well!
Something seems to be wrong with Ethereum as it just can’t get it right recently. May 2022 has been one of the worst correction months for Ethereum in its history. Despite being the Alt-King, Ethereum has struggled for much of 2022.
With the recent $2.1 billion worth of ETH (or a total of 1% of ETH) transferred to exchanges, there’s fear in the air. This trend is in its most sustained upswing since May 2021, as reported by Santiment.
Gas prices hit record lows
Investors are continuing to reel from the Terra crash with decreased DeFi and NFT activity. This has affected the gas prices on the Ethereum network which have reduced to a near one year low.
The cost of operations on the Uniswap non-custodial exchange and the Opensea NFT marketplace is about $4 – $5. The transfer of ERC-20 tokens will cost the user a little over $1. The decrease in fees was reflected in the income of Ethereum miners, which also fell to mid-summer 2021 levels.
The chart reached an all-time high at the start of May and has been in the fall ever since. The extreme market volatility during the Terra collapse surely contributed to this downtrend as we enter June.
The ETH downfall continues
The ETH prices can’t seem to get out of this slump as they plunder below $1,800 again. ETH is down 6.25% at press time despite seeing a late-May resurgence when it almost pushed to $2,000. Volume is up by 25% with the low prices and transaction fees prompting investors. This alone has been sufficient for investors to send their holdings onto exchanges.
Tough times are looking to persist for Ethereum as crypto markets attempt to revive after the Terra debacle.