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Ethereum’s Exchange Supply Reaches Historic Lows as Withdrawals Surge
Recent Decline in Ethereum’s Exchange Supply
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In a recent analysis by the on-chain analytics firm Santiment, a notable trend has emerged regarding Ethereum’s supply on exchanges. The “Supply on Exchanges” metric quantifies the percentage of the total Ethereum (ETH) supply currently held in wallets associated with centralized exchanges.
An increase in this metric indicates a net influx of tokens to these platforms, often suggesting that investors may be preparing to sell, which could exert downward pressure on Ethereum’s price. Conversely, a decline suggests that ETH is being withdrawn from exchanges. Typically, investors move their holdings to self-custodial wallets when they intend to retain them long-term, a bullish signal for the cryptocurrency market.
According to Santiment’s data, Ethereum’s exchange supply has been on a persistent downward trend over the past few years, with occasional deviations. Notably, a significant uptick was observed during the bull run at the end of 2024, likely indicating that some investors capitalized on the favorable market conditions.
Post-peak, however, the metric resumed its downward trajectory, indicating a renewed focus on accumulation by ETH holders. Currently, the metric stands at an unprecedented low of 4.9%.
Bitcoin’s Parallel Decline in Exchange Supply
Alongside Ethereum, Bitcoin has also experienced a trend of net outflows from exchanges, albeit with fewer deviations. Over the last five years, investors have withdrawn approximately 1.7 million BTC, reducing the metric’s value to 7.1%, the lowest since November 2018. During this period, ETH holders have removed 15.3 million tokens from exchanges.
It’s important to note that while exchanges were once the dominant gateways into the crypto market, the rise of exchange-traded funds (ETFs) has diversified investor entry points. Consequently, exchange outflows may not have as significant an impact as they once did.
Current Ethereum Price Dynamics
As of the latest update, Ethereum is trading around $2,500, reflecting a decline of over 2% in the past week. The price movement appears relatively stable, without substantial fluctuations.
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