CRYPTOSTAKE
StakingMarketRegulationCryptostake ExplainsUncharted
Noteworthy Supply Redirection: Institutions Channel Ethereum (ETH) to Exchanges

Institutional players are actively depositing ETH to exchanges  

Alameda Research and Celsius Network are channeling large amounts of Ethereum (ETH) into Coinbase. This movement is notably swelling the ETH supply on the platform. Just recently, Celsius Network has transferred 47,100 ETH, valued at approximately $107.7 million, to Coinbase following a court's green light. 

 

Similarly, FTX and Alameda Research have collectively deposited over 39,120 Ethereum, worth beyond $79.5 million, into various crypto exchanges since October 2023. This trend of institutional Ethereum deposits could have critical implications for the cryptocurrency's performance, especially against its peers like Bitcoin and Solana.

The rationale behind the increased Ethereum flow to exchanges 

 

Institutions are not just transferring Ethereum to exchanges randomly. For instance, a detailed analysis by Spotonchain reveals that Celsius Network deposited 10,000 ETH to Coinbase in two separate batches. This address still retains a small amount of ETH, indicative of strategic asset management. Moreover, the company's court-sanctioned decision to convert altcoins into Bitcoin and Ethereum for creditor distribution adds a layer of complexity to these transfers. 

 

The Ethereum supply dynamics on exchanges are not solely driven by Celsius Network. Alameda Research, another major player, has been actively transferring Ethereum to Coinbase, with a notable transfer of 1,550 ETH reported by Spotonchain. Since October 2023, the combined Ethereum deposits from FTX and Alameda Research have exceeded 39,120 ETH, valued at over $79.5 million. 

 

Intriguingly, even high-profile figures like the former American President are reported to be moving large sums of Ethereum to exchanges. In the last week alone, the Ethereum balance on centralized exchanges surged by over 132,560 ETH. This influx of Ethereum into exchanges could potentially influence the cryptocurrency's market behavior, presenting new challenges and opportunities for investors and traders alike.