Institutions such as Alameda Research and Celsius Network are depositing their Ethereum (ETH) to Coinbase. Meanwhile, the ETH supply on centralized exchanges has been increasing.
Ethereum has been an underperformer compared to Bitcoin or Solana during the recent bull rally. Meanwhile, the increased supply on centralized exchanges might further hinder the ETH rally.
Why Institutions Are Depositing Ethereum to Centralized Exchanges?
According to Spotonchain, Celsius Network deposited 10,000 Ethereum worth $23.56 million to Coinbase. The screenshot below shows that a Celsius Network address – 0x4131 sent 10,000 ETH to the Coinbase deposit address in two batches of 5,000 ETH each.
During press time, the particular Celsius Network address still holds 10.2 ETH, roughly worth over $24,000. In total, the address holds crypto assets worth $1.632 million. Not to mention, Spotonchain has labeled 18+ addresses as “Celsius Network.”
A Celsius Network Wallet Portfolio and Latest Transactions. Source: Spotonchain
In the past two weeks, Celsius Network addresses have deposited 47,100 ETH worth $107.7 million on Coinbase.
In June 2023, Celsius won court approval to convert altcoins into Bitcoin and Ethereum. The company intends to distribute Bitcoin and Ethereum to its creditors through centralized exchanges such as Coinbase.
Hence, there needs to be clarity on whether Celsius will sell the ETH or distribute it to the creditors. In December 2023, BeInCrypto reported that the withdrawal process had started for selected Celsius customers.
FTX and Alameda Research Increase Supply on Centralized Exchanges
Another bankrupt company, Alameda Research, is also transferring Ethereum to Coinbase. Spotonchain reported that on Tuesday, the company transferred 1,550 ETH worth $3.67 million to Coinbase.
Since October 2023, FTX and Alameda Research have deposited 39,120 ETH worth over $79.5 million into crypto exchanges.
Even the former American President, Donald Trump, has been reportedly dumping Ethereum. On December 28, BeInCrypto reported that Trump sent $2.8 million worth of ETH to centralized exchanges.
The screenshot below shows that the ETH balance on centralized exchanges has increased by over 132,560 in the past 7 days.
Ethereum Netflows. Source: IntoTheBlock
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