According to a research conducted by trustnodes.com, a major part of ETH transactions are un-related to crypto exchanges, through data provided by Santiment. It simply means that the in and out movements of exchanges could not pile up to the amount of movement ETH experiences on an average.
The report noted that almost two million ETH change hands on a daily basis. The numbers change according to market trend, but 2 percent of the tokens do move on a daily basis.
Yesterday, on August 14, the numbers went up to 3.5 million which shockingly coincided with the recent low of $250 per ETH. Meanwhile, the difference between the amounts of ETH withdrawn from exchanges to the supply sent to them also expanded.
The data reveals that almost 100,000 more ETH have been deposited in the exchanges than the number of coins withdrawn. For Tuesday, the number went up to 120,000.
Such a huge gap in movements was recorded back in March when around 600,000 more tokens were funded in exchanges than withdrawn. Stats provided by Santiment blockchain solutions also show a deeper analysis of this exercise rather than just the difference in deposits and withdrawals.
Talking about today’s situation, some 450,000 tokens have circulated through the system while around 1.34 million ETH have been transferred. The figure is far less than what we experienced in January when the total ETH transfers reached 26 million. August 30, 2017, still holds the record for most coins transferred, when 36 million ETH relocated their addresses.
Back to yesterday, 1.3 million of the sum total was either sent or withdrawn from exchanges, giving again around 30 percent-35 percent. The website also stated that the percentage could vary as they were not able to calculate the exact average. But, apparently, it did claim that only 30 percent of ETH movements are used for trading purposes on exchanges.
One should know that the figures are partially manual, including the exchanges investigated for stats, and some of it was moderately automatic.
CTO of Santiment, Valentin Mihov, stated in an interview, “Today we added a new list of ~100 new exchange addresses, and we will update this stat, but most probably it won’t change much.”
He claimed that his company tracks some of the premier exchanges like Kraken, Binance, Bitfinex, Poloniex, etc. Mihov added, “Our total list is around 140 wallets, but we don’t give out the list at the moment, as it took quite a bit of effort to collect it. It is much bigger than the wallets marked on etherscan.”
140 addresses is not a small number and makes us believe that it would be the major share of exchange activity, but a better estimate for every operational exchange would shift the ETH movement to 40 percent.
It probably means that most of the ETH transfers are not affected by speculative use and are essentially sent to dApps, proceed between wallets or are used to buy goods from merchants that support Coinbase Commerce.
It has also become the most suitable coin for crypto scammers that increase the importance of knowing ethereum’s movement patterns. Thus, the recent report holds a great importance for regulatory authorities and local crypto communities.