Enjin Coin Balances on Exchanges Increase Despite More ENJ On-Chain Withdrawals

Fintoism Enjin Coin Price

There are plenty of cryptocurrency-related statistics that provide interesting insights. Looking at the current Enjin Coin supply on exchanges, there is a notable increase in the past few months.

At the same time, there is an uptick in the amount of ENJ being moved to exchanges. That makes total sense, but there is also more ENJ being withdrawn from exchanges at the same time. 

Enjin Coin Balances on Exchanges

When the price of any crypto asset rises, more funds will be moved to an exchange. That is only to be expected. It is common for people to invest in an asset and cash out when the price moves up. They then try to repeat that process over and over again until they make enough money. 

Fintoism ENJ Exchange Balance

In the case of Enjin Coin, there is nothing too surprising going on. Over the past year, the number of ENJ on exchanges has gone through its ups and downs. One interesting development takes place in late October 2019. The supply of ENJ on exchanges suddenly decreases by nearly 40 million in quick succession.

That dip has been overcome since. As of January 29,2020 there are well over 311,8 million ENJ on exchanges again. That represents nearly 39% of the total supply. Not a bad figure, all things considered. Given the recent price action, it is possible that these numbers will continue to increase accordingly. 

ENJ Deposits Over Time

The growing number of Enjin Coin on exchanges has to come from somewhere. Looking over the charts for ENJ deposits, some interesting signs become apparent. There are plenty of highs and lows in terms of deposits over the past year. No real spike has taken place since mid-November of 2019.

Fintoism ENJ Exchange Deposits

Even so, the amounts have increased throughout January 2020. This recent increase isn’t necessarily significant, however. It merely shows how nearly 100 transfers are made to exchanges every single day. During peaks, that number can easily increase to 300+. As such, no imminent fear of people liquidating Enjin Coin is warranted. 

ENJ Withdrawals Increase Faster

In fact, there is a completely different trend becoming apparent where ENJ is concerned. Looking at the on-chain withdrawals from exchange addresses, there appears to be an unexpected increase. That would usually indicate that there is less funds stored in exchange wallets. From the chart above, we know that is not the case.

Fintoism ENJ Exchange Withdrawals

Given how there were over 234 transfers from exchanges on January 29, they must seemingly be for very small amounts of Enjin Coin. That is not a bad sign either. While it doesn’t necessarily reduce exchange liquidity, it is still an interesting statistic. This goes to show that there is a lot of activity surrounding ENJ in many different ways. 

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