Bullish? Only 16% of ETH Is Currently Sitting on Exchanges
The overall demand for ETH continues to increase with new on-chain data suggesting that the total supply held on exchanges has declined by approximately one-third in the past year alone. As such, less than 20% of all ETH in existence is currently sitting on trading platforms.
Investors Withdraw ETH Tokens
It’s safe to say that the Ethereum blockchain is arguably the most utilized network in the cryptocurrency space. After all, it’s the home of numerous projects from two of the hottest trends in the past year – non-fungible tokens and decentralized finance.
Recognizing the protocol’s potential, investors started praising its native cryptocurrency a while back and begun allocating substantial funds to it. Some of the most notable names, even such outside of the community that has openly admitted to owning portions of the second-largest cryptocurrency, include Mark Cuban and Robert Kiyosaki.
On-chain data from the analytics company Santiment suggests that most Ethereum investors seem bullish as the number of ETH tokens sitting on exchanges has gone down dramatically in the past year.
Back on September 26th, 2020, 24.1% of the overall supply of ETH stood on trading platforms. Fast-forward a year later, and the percentage has decreased by roughly one-third to 16.1%. Consequently, the analytics firm concluded that “this is a good sign for patient hodlers.”
ETH’s Price Surge in a Year
The decreasing supply of ETH held on exchanges essentially means that investors are not in a rush to sell their coins, which could be regarded as a bullish sign. Looking at what transpired with its USD value in the same timeframe in which the supply on exchanges dropped is quite impressive on its own.
On September 26th last year, ETH traded around $350. It went on a full bull run in the following months and more than doubled its value by the end of 2020.
2021 started on a high note as the second-largest crypto kept doubling in price, it broke its 2018 ATH and reached unseen highs. It all culminated in mid-May when it charted its current record of $4,400.
Despite the subsequent retracement and volatility, ETH still stands today – a year later – at around $3,100. This means that in the same timeframe in which investors were withdrawing ETH from exchanges, the asset’s price skyrocketed by nearly 800%.
OhNoRipple via https://www.ohnocrypto.com/ @Jordan Lyanchev, @Khareem Sudlow