CEX Ethereum supply surge sparks bearish concerns

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Well-known institutions including Celsius Network and Alameda Research are sending large amounts of Ethereum (ETH) to centralized exchanges such as Coinbase.

This change in strategy comes as Ethereum’s performance lags behind other major cryptocurrencies such as Bitcoin and Solana during the current bull run.

Celsius Network’s Famous Ethereum Deposits

Blockchain analysis platform Spotonchain revealed that Celsius Network has deposited 10,000 ETH (approximately $23.56 million) into Coinbase. The transaction was initiated by the Cels network address 0x4131 and was conducted in two batches of 5,000 ETH each, as shown in the figure below.

The Celsius network address currently holds 10.2 ETH, worth over $24,000, for a total crypto asset worth $1.63 million. Spotonchain has identified multiple addresses associated with the Celsius network, marking a series of strategic moves by the organization.

In the past two weeks alone, Celsius network addresses have transferred an impressive 47,100 ETH to Coinbase, worth a total of $107.7 million. The surge in deposits follows Celcius Network’s June 2023 court-approved decision to convert altcoins into Bitcoin and Ethereum.

Alameda Research and FTX join the wave

In addition to this interesting trend, Alameda Research, a well-known firm in the cryptocurrency space, has been actively migrating Ethereum to Coinbase. On a recent Tuesday, the company transferred 1,550 ETH worth $3.67 million.

Since October 2023, FTX and Alameda Research have sent 39,120 ETH, worth up to $79.5 million, to various cryptocurrency exchanges.

Even former US President Donald Trump appears to be joining the trend. The latest reports on December 28 showed that Trump liquidated $2.8 million worth of ETH on centralized exchanges.

Ethereum has underperformed compared to peers like Bitcoin and Solana, and the increasing supply of ETH on centralized exchanges adds another layer of uncertainty.