Santiment analysts record a sharp influx of ETH on exchanges

The number of unique users sending the asset to the platforms has reached its highest since September

05.05.2023 - 16:00

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What’s new? Experts at analytics company Santiment have recorded a sharp surge in depositing Ethereum altcoin on exchanges. The number of unique users sending the asset to the platforms hit an 8-month high on May 3. Analysts warned that this could be a harbinger of a future rise in ETH volatility. According to them, previously a similar spike in quotation fluctuations in the crypto market was observed during the Ethereum blockchain upgrade called The Merge and the bankruptcy of the FTX crypto exchange in September and November last year, respectively.

😮 #Ethereum's active deposits just hit an 8-month high. As we research the most likely cause, we can currently state that this likely will foreshadow upcoming increased $ETH volatility, similar to the result of spikes during the #merge & #FTX collapse. https://t.co/aBeHQudM52 pic.twitter.com/oHeypfUPvJ — Santiment (@santimentfeed) May 5, 2023

What else did analysts report? Santiment noted that active Ethereum deposits jumped to their highest level since the September 15 network upgrade and “eclipse the FTX collapse panic.” A total of 9913 unique ETH deposits were recorded on the exchanges.

Santiment previously said that the continued rise in the number of long-term holders of bitcoin could signal the start of a bull market. A similar trend was observed from January through April 2021, when the BTC rate first rose above $64 000. In November of that year, the asset set an all-time high of $69 000.

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