![What Is Asset Tokenization? Types, Why It Matters Now [2025]](https://coininsights.com/wp-content/uploads/2025/05/asset_tokenization-360x180.png)
On-chain data shows Ethereum has been observing high exchange outflows recently, but a development related to Tether (USDT) may be a bearish obstacle for the market.
Ethereum And Tether Both Have Seen Withdrawals From Exchanges Recently
As explained by the on-chain analytics firm Santiment in a new post on X, the market is ending July on a mixed note in terms of the exchange flows. The metric of interest here is the “Exchange Flow Balance,” which measures the net amount of a given asset that’s entering into or exiting the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the inflows to these platforms are outweighing the outflows right now. Such a trend implies there is currently demand for trading away the asset among the investors.
Related Reading
On the other hand, the indicator being negative implies the holders are making net withdrawals from the exchanges, potentially holding onto their coins in the long term.
What implications either of these trends would have on the wider market depends on the exact type of cryptocurrency the one in question is: stablecoin or volatile asset. In the context of the current topic, Santiment has cited the data for Ethereum and Tether, which means both types of coins are relevant here.
Below is the chart shared by the analytics firm that shows the trend in the Exchange Flow Balance for the two assets over the past few months:
As displayed in the above graph, the Exchange Flow Balance has recently observed a sharp negative spike for both Ethereum and Tether recently, implying that investors have been taking large amounts of these coins off into self-custody.
For volatile assets, trading the asset away can have a negative effect on its price, so the exchange reserve going up can be a bearish sign. The Exchange Flow Balance being negative, on the contrary, can be bullish, as it implies the potential “sell supply” of the coin is decreasing.
During the latest outflow spree, investors have withdrawn 80,763 ETH (almost $268 million) from these platforms, which is the largest outflow spike in five months. Thus, Ethereum has seen its sell supply go through a significant decline.
In the case of stablecoins, exchange inflows also mean the investors want to swap the asset, but as these tokens have their value “stable” around the $1 mark by definition, such trades have no effect on their price.
This doesn’t mean that they aren’t of any consequence to the market, however, as investors usually use stables to buy a volatile asset like Ethereum, so large exchange inflows of a stablecoin like Tether can be bullish for these other coins.
Related Reading
In this view, the exchange reserve of USDT and other stables can be considered as a potential “buy supply” for the volatile cryptocurrencies. Recently, USDT has seen net withdrawals of $346 million, meaning that this buy supply has gone down.
“This reflects less buying power for future purchases from traders, which is generally a necessary ingredient needed to boost prices in the long run,” notes Santiment. It now remains to be seen how the Ethereum price will develop in the near future, given that both bullish and bearish developments have simultaneously occurred in the market.
ETH Price
At the time of writing, Ethereum is trading at around $3,300, down more than 3% over the past week.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
On-chain data shows Ethereum has been observing high exchange outflows recently, but a development related to Tether (USDT) may be a bearish obstacle for the market.
Ethereum And Tether Both Have Seen Withdrawals From Exchanges Recently
As explained by the on-chain analytics firm Santiment in a new post on X, the market is ending July on a mixed note in terms of the exchange flows. The metric of interest here is the “Exchange Flow Balance,” which measures the net amount of a given asset that’s entering into or exiting the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the inflows to these platforms are outweighing the outflows right now. Such a trend implies there is currently demand for trading away the asset among the investors.
Related Reading
On the other hand, the indicator being negative implies the holders are making net withdrawals from the exchanges, potentially holding onto their coins in the long term.
What implications either of these trends would have on the wider market depends on the exact type of cryptocurrency the one in question is: stablecoin or volatile asset. In the context of the current topic, Santiment has cited the data for Ethereum and Tether, which means both types of coins are relevant here.
Below is the chart shared by the analytics firm that shows the trend in the Exchange Flow Balance for the two assets over the past few months:
As displayed in the above graph, the Exchange Flow Balance has recently observed a sharp negative spike for both Ethereum and Tether recently, implying that investors have been taking large amounts of these coins off into self-custody.
For volatile assets, trading the asset away can have a negative effect on its price, so the exchange reserve going up can be a bearish sign. The Exchange Flow Balance being negative, on the contrary, can be bullish, as it implies the potential “sell supply” of the coin is decreasing.
During the latest outflow spree, investors have withdrawn 80,763 ETH (almost $268 million) from these platforms, which is the largest outflow spike in five months. Thus, Ethereum has seen its sell supply go through a significant decline.
In the case of stablecoins, exchange inflows also mean the investors want to swap the asset, but as these tokens have their value “stable” around the $1 mark by definition, such trades have no effect on their price.
This doesn’t mean that they aren’t of any consequence to the market, however, as investors usually use stables to buy a volatile asset like Ethereum, so large exchange inflows of a stablecoin like Tether can be bullish for these other coins.
Related Reading
In this view, the exchange reserve of USDT and other stables can be considered as a potential “buy supply” for the volatile cryptocurrencies. Recently, USDT has seen net withdrawals of $346 million, meaning that this buy supply has gone down.
“This reflects less buying power for future purchases from traders, which is generally a necessary ingredient needed to boost prices in the long run,” notes Santiment. It now remains to be seen how the Ethereum price will develop in the near future, given that both bullish and bearish developments have simultaneously occurred in the market.
ETH Price
At the time of writing, Ethereum is trading at around $3,300, down more than 3% over the past week.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Appreciating the persistence you put into your site and detailed information you offer. It’s nice to come across a blog every once in a while that isn’t the same out of date rehashed material. Wonderful read! I’ve saved your site and I’m including your RSS feeds to my Google account.
I conceive this internet site contains some really wonderful information for everyone : D.
Good day very cool blog!! Guy .. Beautiful .. Superb .. I’ll bookmark your blog and take the feeds additionally…I am satisfied to find a lot of useful information right here in the publish, we need work out more strategies on this regard, thank you for sharing.
Some really superb info , Gladiolus I found this.
Hey! This is my first visit to your blog! We are a collection of volunteers and starting a new initiative in a community in the same niche. Your blog provided us useful information to work on. You have done a wonderful job!
Thanks, I have just been searching for information approximately this subject for a long time and yours is the best I have came upon so far. However, what about the bottom line? Are you positive concerning the source?
Fantastic goods from you, man. I have take into account your stuff prior to and you’re just extremely fantastic. I really like what you have acquired here, certainly like what you’re stating and the way during which you assert it. You are making it enjoyable and you still care for to stay it sensible. I can’t wait to read much more from you. That is actually a tremendous website.
Merely wanna remark on few general things, The website design is perfect, the subject matter is really good. “Believe those who are seeking the truth. Doubt those who find it.” by Andre Gide.
Hi are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and set up my own. Do you require any coding knowledge to make your own blog? Any help would be really appreciated!
Wonderful beat ! I wish to apprentice while you amend your website, how can i subscribe for a blog web site? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear idea
The layout is visually appealing and very functional.
This site truly stands out as a great example of quality web design and performance.
The layout is visually appealing and very functional.
It provides an excellent user experience from start to finish.
I’m really impressed by the speed and responsiveness.
Hi! I’ve been reading your blog for a long time now and finally got the bravery to go ahead and give you a shout out from Dallas Tx! Just wanted to mention keep up the good job!
Rattling nice style and wonderful content, very little else we require : D.
I¦ve read a few good stuff here. Certainly price bookmarking for revisiting. I surprise how much attempt you place to create this sort of magnificent informative site.
hi!,I like your writing very a lot! share we keep up a correspondence more about your post on AOL? I need a specialist on this space to solve my problem. Maybe that’s you! Taking a look forward to look you.
I conceive this internet site holds some very wonderful information for everyone : D.