Coinbase, a renowned crypto exchange, has seen massive ETH outflows today, according to a CryptoQuant report. The data reveals that the exchange has recorded the highest total outflow rate from the exchange.
Investors are Optimistic about ETH 2.0 Success
The “outflows” indicator, as the name implies, indicates the amount of ETH sent from exchange to personal wallets. Outflows are generally positive signals for the price of a cryptocurrency because they suggest that the market is under buying pressure. A glance at the Coinbase Pro outflow history confirms the tendency; as the bull run progressed, identical readings of the indicator became more common.
On the other hand, when the inflow value rises, more crypto is being sent to exchanges to sell or purchase altcoins.
According to rationality, when large amounts of ETH leave an exchange, hodlers store the money in their cold-storage wallets for an undefined period. As the metric’s value has skyrocketed, all investors are shifting their Ethereum out of exchanges, either to hodl, stake, or sell through OTC agreements.
CryptoQuant Data reveals that the supply of staked $ETH 2.0 has surpassed 10%. Staking allows Eth owners to earn passive income without selling their tokens. There are sometimes limitations on how soon you can withdraw your crypto after staking, penalties for not actively validating transactions, a minimum stake amount, etc. Nonetheless, investors are willing to take a chance.
ETH Price Prediction
At the time of writing, ETH’s price is $2,872.55, up 3.32%. A panel of 36 experts is still optimistic that ETH’s price will increase by the end of 2022. The panel noted that ether price is expected to hit $5,783 this year, rising to $11,764 by 2025 and $23,372 by 2030. The majority of the experts on the panel are bullish about Ether, with 61 percent recommending buying now and 32 percent recommending hodling.
However, the new projection is more than 11% lower than January’s forecast of US$6,500 for the year-end. Regardless, if Ethereum can reach the revised estimate by the end of the year, it will beat its previous all-time high of US$4,878.26.
“The Merge, an upgrade to Ethereum, should happen this summer,” said Joseph Raczynski, a technologist, and futurist at Thomson Reuters. This could have a considerable impact on the token’s value. This has been a long time coming for many people. It should be significantly more secure, energy-efficient, and deflationary. As a leading blockchain, if it isn’t the trifecta of promise, I don’t know what is.”
Meanwhile, Finder’s team of experts reduced Bitcoin’s end of year target to US$65,185 from US$76,360 in January.
Value of ETH Could Plummet
The value of staked Ether could be lower than Ethereum 1.0 if the Ethereum “merge and acceptance do not occur as generally predicted,” according to Gordon Liao, the chief economist at Uniswap Labs. “There’s also a price risk linked with the staked Ether’s secondary market trade, which might de-peg from Ether if users lose faith in the upgrade or staking initiative.”