Key Points
- Ethereum’s exchange outflows reached $4 billion in Q1 2024, indicating increased coin accumulation.
- The Market Value to Realised Value (MVRV) ratio suggested Ethereum was trading slightly below its realized value.
Ethereum Outflows Spike in Q1 2024
Data from IntoTheBlock reveals that Ethereum outflows from crypto exchanges reached $4 billion in Q1 2024. This suggests an uptick in coin accumulation over the 90-day period, despite a 10% drop in Ethereum’s value after peaking at $4065 on March 11.
Ethereum’s rally above $3500 and towards $4000 between March 4 and 19 led to a wave of sell-offs. This resulted in an increase in exchange reserves, with a year-to-date (YTD) review showing a 5% decline in coin reserves. This decline indicates that Ethereum accumulation significantly outpaced distribution during the quarter.
Ethereum Wallet Addresses and MVRV Ratio
From January to March, the number of Ethereum wallet addresses holding between 100 and 100,000 coins fell by 2%, according to Santiment. This signifies a decrease in Ethereum holding by its investor cohort, known to be market movers. As of the time of writing, 45,623 wallet addresses held between 100 and 100,000 Ethereum, accounting for 36% of the circulating supply.
On the other hand, the number of shrimp addresses holding between zero and 100 Ethereum coins increased. By March 31, their number was 118.25 million, up 6% during the first quarter. This category of Ethereum holders controlled 10% of the coin’s supply.
The surge in Ethereum’s price above $3500 in Q1 led to a spike in its Market Value to Realised Value (MVRV) ratio. This metric measures whether an asset is overvalued or undervalued. When the ratio is high and on an uptrend, it suggests that the market value of an asset has exceeded its realized value.
However, when an asset’s MVRV ratio declines, it is considered undervalued relative to its realized value. Ethereum’s price rally to $4000 on March 11 pushed its MVRV ratio to a YTD high of 138.38%. Although the ratio also declined after Ethereum’s price fell from its peak, it ended the quarter at 107%. Currently below 100%, Ethereum’s MVRV ratio indicates its price is slightly below the average price at which all coins were last moved on-chain.
