According to IntoTheBlock, a total of 302,092 ETH have left centralized exchanges in January amid the recent price drawdown. Ethereum witnessed its largest monthly price decline since March 2020 in January, plummeting with Bitcoin during one of the worst-ever starts to a year on cryptocurrency markets.
Due to the volatility experienced in January, the price of Ethereum fell by 26.83% as it tested lows around $2,159 on Jan. 24.
Meanwhile, Ethereum balances on exchanges are decreasing, indicating that ETH investors are in it for the long haul following a significant price surge over the last year. As a result, the continuous migration of coins to cold wallets might be an indication of long-term price swings. This is because when whale investors intend to store cryptocurrencies for a long time, they often send them away from exchanges.
At the time of publication, Ethereum was trading at $2,775, marginally up in the last 24 hours. After reaching a record high of roughly $4,891 on Nov. 16, 2021, Ethereum has plummeted by more than 48%.
ETH burned surpasses $4.7 billion worth
IntoTheBlock reports that more ETH is being burned, with over 1.72 million ETH worth $4.75 billion burned since the EIP-1559 protocol was introduced in August as part of the London hard fork.
The Ethereum fee market was reformed by the EIP-1559 protocol, which changed the gas fee cap and introduced a burn function that permanently cancels a percentage of transaction fees on the blockchain.