Ethereum (ETH) Balance on Exchanges Plummets as All ETH Deposits Might Be Converted to DeFi

Glassnode analytics provider has reported that the ETH balance on online exchanges has slumped to a nine-month low.

Beyond that, the number of ETH wallets and other on-chain fundamentals has also declined.

ETH balance on exchanges plummets

Glassnode analytics aggregator has reported that ETH on-chain fundamentals have not been doing well recently.

Earlier today, the company published a tweet with a chart that shows that the amount of ETH held by users on crypto exchanges has seen a significant decrease and hit a nine-month low.

The value of this metric now totals 16,583,339.932 ETH. The previous similar low was registered on exactly the same day last year.

Number of wallets with 1,000+ ETH in decline

The amount of ETH wallets where users store 1,000 ETH or more has seen a major two-year drop, according to another Glassnode tweet.

Now, there are 7,218 wallets with 1,000+ ETH out there, but this number is dropping quickly.

ETH mean transaction volume has also decreased substantially over the past 24 hours.

At press time, it is down 25.4 percent and totals 9.099 ETH.

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Increase in number of ETH non-zero wallets

Despite the negative reports mentioned above, Glassnode also shared some good news about ETH.

The number of non-zero ETH wallets has increased to a new all-time high of 47,185,555.

Further, the number of ETH wired to crypto exchanges has surged over the past 24 hours. Currently, this metric shows a 39 percent increase (864.792).

However, since ETH exchange balances are in decline, this is likely to signify that users are sending their ETH to DeFi and locking them in smart contracts for yield farming.