Ethereum On-Chain Data Hints at Institutional Adoption

Ethereum On-Chain Data Hints at Institutional Adoption

This content adapted from Two Prime Digital Assets’ April 27, 2021 report, “The Rise of Institutional Ethereum Investors,” available for free download here.

There has been a lot of incredible news about Ethereum’s price since we first delivered our April 27 talk. Up to that point, we had been watching for more institutional adoption signals by analyzing on-chain data.

Here are two data points we think are worth calling out.

 Net Transfer Volume From/To Exchanges 

ETH continues to leave exchanges, and outflows are accelerating. There are thousands of different Dapps which create thousands of different use cases for ETH. Institutional investors are starting to wake up to the power of DeFi and its disruption on legacy finance. When ETH is locked up in DeFi protocols, it creates a delayed liquidity effect which means ETH won’t be sold on exchanges anytime soon.

Number of Addresses With More Than 10,000 ETH

Ethereum addresses with a balance of more than 10,000 ETH continue to rise, which points to institutional adoption. These addresses are buying to either hold for the long term or use in different decentralized finance protocols. 

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