Santiment, a leading provider of on-chain and social media data, reported a transfer of $505 million worth of Ethereum tokens from self-custodial wallets to Binance, the largest remittance of its kind in the past 5 years. This move not only caught the attention of the crypto community, but also caused the ETH network to surge.
The shift underscores the growing trend of mass self-incarceration. Self-custody means keeping cryptocurrencies in a wallet where only the owner has access to the private keys. In contrast, exchanges hold cryptocurrencies on behalf of users, making transactions faster and more convenient.
🐳 $505 million in transfers #Ethereum Token Online #Binance Today, this is one of the largest exchange transfer self-custody transactions in 5 years.it also soared $ ether The network saw its largest daily exchange supply increase since the previous day #merge. https://t.co/FTFNugMg16 https://t.co/FMfHl3V3zB pic.twitter.com/HAmtunceln
– Santiment (@santimentfeed) May 1, 2023
According to Santiment data, the move resulted in the largest one-day increase in exchange supply on the ethereum network since the day before the merger — a major upgrade that transformed the ethereum network from a proof-of-consensus mechanism to a proof-of-work stake.
The move to Binance caused a ripple effect across the crypto market. Many traders and investors believed the move could signal a change in market sentiment, leading to a spike in ethereum prices. This also sparked speculation that the tokens could be dumped onto Binance, adding to the bearish pressure on ETH.
The news sparked a debate in the crypto community about the pros and cons of self-custody versus exchange custody. While self-custody offers greater control and security, exchange custody offers greater convenience and liquidity.
Despite the potential risks, more and more traders are turning to exchange hosting due to the convenience and ease of trading. However, with the number of exchange hacks and security breaches increasing, many investors remain wary of storing their assets on exchanges.
The cryptocurrency market is always full of surprises, and this incident reminds us of the need to stay vigilant and up-to-date.
- Assessing the probability of ETH price falling to $1,400
- Update on the status of depositing and withdrawing ETH stakes 2 weeks after implementing the Shapella upgrade
according to Kyptos