Recent data show that only 16% of Ethereum’s total supply is in digital currency exchanges. The decline in stock exchanges could be an upward signal for the Ethereum market.
to the Report Cryptocurrency Demand for Ethereum continues to rise, with in-line data showing that Ethereum exchanges’ inventories have fallen by almost a third since last year. As a result, less than 20 percent of Ethereum’s total supply is currently on trading platforms.
It is easy to say that Ethereum is the most widely used network in the digital blockchain space of China. One of the reasons for this could be the numerous projects that have been launched in two of the hottest currents of the past year, the Non-Aligned Tokens (NFT) and the Decentralized Finance (DeFi) in the Ethereum network.
Understanding the capabilities of this protocol, various investors have long since begun to praise Ethereum and have devoted considerable capital to it. Celebrities like Mark Cuban and Robert Kiyosaki, who work outside the digital currency industry, have admitted that they have some Ethereum.
In-house data from the analyst firm Santiment show that most Ethereum investors have a bullish outlook, and the stock of Ethereum exchanges has dropped significantly compared to last year.
As of September 26, 2020, 24.1% of Ethereum’s total supply was on trading platforms. A year later, however, the rate fell by one-third to 16.1 percent. Centiment says this is a good sign for patient investors who have kept their Ethereums.
The decline in Ethereum supply in exchange offices means that investors are in no hurry to sell their assets. This could be an upward signal for this digital currency. Paying attention to price changes during periods when supply in exchange offices has declined can in itself be very effective.
Ethereum traded at $ 350 on September 26 last year. In the following months, the market trend increased and by the end of 2020, the price of this digital currency doubled.
At the beginning of 2021, Ethereum continued its upward trend and set a new record by crossing the historical peak of 2018. Ethereum prices peaked in May, reaching a new record high of $ 4,400.
Although Ethereum continued to adjust and fluctuate widely, it was able to maintain its position above $ 3,100. This means that at the same time that investors were withdrawing their Ethereums from the exchange offices, the price skyrocketed and grew by 800%.