Binance Records Three-Year High in Ether Withdrawals Amidst Riot's Bitcoin Sell-Off

The largest cryptocurrency exchange Binance witnessed a three-year high in ether withdrawals on July 3, as over 166,000 ETH withdrawal transactions were processed. According to CryptoQuant's Darkfost, this marks a record count and could indicate accumulation by holders moving coins to self-custody or funds rotating into decentralized finance (DeFi) yield opportunities.

However, despite the surge in withdrawals, Binance's exchange netflow remained positive at 12,938 ETH. Fellow CryptoQuant analyst PelinayPA cautioned that a positive netflow suggests 'selling risk' because coins on exchanges are easier to sell, implying that a crowd of small holders may be withdrawing while fewer, larger players position inventory to sell.

Meanwhile, U.S. spot ether exchange-traded funds (ETFs) returned to net inflows yesterday, adding $29.08 million, with Blackrock's ETHA accounting for $29.74 million. This helped ether defend the $1,700 support zone.