What to Know
- CryptoQuant analyst Darkfost said Binance processed more than 166,000 Ethereum withdrawal transactions in one day, marking the exchange’s highest daily withdrawal activity since March 2023.
- Withdrawal surge may signal long-term Ethereum accumulation, although DeFi migrations and investor concerns surrounding the July 1 MiCA rollout also contributed.
- Ethereum remains about 67% below its August 2025 peak, while the unprecedented withdrawal activity highlights growing investor interest as the asset attempts to stabilize near $1,500.
CryptoQuant analyst Darkfost has reported that Binance recorded its highest number of Ethereum withdrawal transactions in more than three years, highlighting a notable shift in investor activity. According to the analyst, the exchange processed more than 166,000 ETH withdrawal transactions in a single day, the highest level since March 2023. The increase came as Ethereum recovered nearly 10% over the past two days while trading around the $1,500 price level.
Darkfost noted that Ethereum has fallen about 67% from its August 2025 peak. That decline is roughly 15 percentage points deeper than Bitcoin’s correction during the same period. Consequently, many market participants are closely watching on-chain activity to determine whether investors are beginning to accumulate the asset at lower prices.
According to Darkfost, withdrawing ETH from centralized exchanges often signals a longer investment horizon. Investors usually move assets into private wallets when they plan to hold them instead of selling immediately. As a result, reduced exchange balances can limit the amount of ETH readily available for trading if buying demand continues to increase.
CryptoQuant data also shows that withdrawal activity remained relatively stable for months. Daily withdrawal transactions generally ranged between 40,000 and 80,000, while only a few spikes exceeded 100,000. However, the latest reading of more than 166,000 transactions stands well above previous peaks, making it one of the strongest withdrawal events recorded in recent years.
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Accumulation may not be the only driver behind the surge
According to Darkfost, the record withdrawal activity should not automatically be viewed as evidence of widespread accumulation. Although long-term buying remains one possible explanation, several other factors may have contributed to the unusually high transaction count. Some investors may have transferred Ethereum into decentralized finance platforms to earn additional returns through staking, lending, or liquidity provision. In that scenario, the assets leave Binance but continue circulating across the broader Ethereum ecosystem instead of remaining in self-custody.
Source: CryptoQuant
Additionally, uncertainty surrounding the European Union’s Markets in Crypto-Assets regulation may have influenced user behavior. Before the rules took effect on July 1, speculation spread across the market that exchanges could restrict cryptocurrency withdrawals. Although those restrictions never materialized, some investors still chose to move their holdings as a precaution.
Darkfost also acknowledged that fear-driven withdrawals likely contributed to the spike. During periods of uncertainty, investors often transfer assets away from centralized exchanges even without immediate plans to hold them for the long term. Despite several possible explanations, Darkfost emphasized that the scale of the withdrawal activity remains significant. A meaningful share of the Ethereum removed from Binance likely reflects genuine accumulation near the $1,500 level, making the latest on-chain data an important development for investors monitoring Ethereum’s recovery.
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