On-chain data shows Ethereum has observed massive inflows of $505 million into Binance during the past day, a sign that selling may be going on.

According to data from the on-chain analytics firm Santiment, this increase in the supply on exchanges is the largest observed since the day before the Merge. The “supply on exchanges” is an indicator that, as its name already implies, measures the percentage of the total Ethereum supply that’s currently sitting in the wallets of all centralized exchanges.

When the value of this metric increases, it means investors are depositing some coins to exchanges right now. This kind of trend can have bearish consequences for the asset’s price as one of the main reasons why investors transfer their coins to exchanges is for selling-related purposes.

On the other hand, decreasing values of this indicator imply a net amount of ETH is exiting these platforms currently. Such withdrawals can be a sign that the holders are accumulating the cryptocurrency, which can naturally be bullish for the asset’s value in the long term.

(by Hououin Kyouma)