Coin flows can tell us a lot about the movements of coins and tokens through the crypto market, as well as investors’ reactions to the market. However, does the latest data match what’s really going on at the exchanges?
Let me ETH take a look at this
Glassnode’s weekly coin feed update revealed that Bitcoin and Ether investors take very separate paths to manage their assets.
While Bitcoin overall saw inflows of around $280.7 million, Ether recorded $952.9 million in outflows.
But does the offer of ETH on exchanges confirm this? Data from Santiment showed that the supply of ETH on exchanges had increased since around the end of April.
On the other hand, while BTC did record coins coming back to the exchanges in early May as the price dropped, this trend did not last. Coins quickly took a u-turn and began to quickly depart from the exchanges again.
Another factor to consider is the role weighted sentiment could play with regards to ETH. Ether investors recently experienced a euphoric spike on May 16 – which ended when the top alt dipped below the psychological price of $2,000. Since then, sentiment has been largely negative, which may actually help ETH to rise once again.
At press time, ETH was trading at $2,070.27.
That being said, one area of concern remains to be Ethereum’s development activity. This metric has surged since late April. However, when compared to development activity in 2020 and 2021, the drop is undeniable.
BTC-ing more than you can chew
So what do you need to know about Bitcoin and Ether right now? It is highly likely that following the crash of the Terra ecosystem, more adventurous altcoin investors will question their favorite projects. Additionally, many might have opted to retreat into Bitcoin’s relative safe haven as fear reigns in the market.
