- The percentage of Ethereum held on cryptocurrency exchanges is 13.35% of the total offer in circulation
- This value is the lowest since November 23, 2018
- DeFi and ETH2.0 staking preparation could be two reasons why this is the case
- It could also indicate that whales are less likely to dump their ETH, at least in the short term
The amount of Ethereum (ETH) held in crypto exchanges is currently 13.35% of the total supply in circulation. This is according to on-chain data from the Santiment team who also pointed out that this is the lowest since November 23, 2018. Such a low percentage of Ethereum on cryptocurrency exchanges could mean investor confidence by ETH holders on the long period. forward value of the digital asset. The Santiment team shared this information via the following tweet.
1) 🙂 The percentage of the total $ ETH held today on the stock exchanges (13.35%) has not been as low since November 23, 2018. The nearly exact two-year milestone is a positive sign for #Ethereum holders, who have historically benefited when supply was curbed pic.twitter.com/r7waudgPdo
– Santiment (@santimentfeed) November 13, 2020
The likelihood of whales discharging their ETH is low at least in the short term
Additionally, the Santiment team was quick to point out that such a low percentage of ETH on exchanges could also mean whales won’t sell their bags at least in the short term. Sales usually occur when this value is above $ 15%.
Indicates that the large odds of whale clearing will remain limited … if $ ETHThe% of supply on exchanges exceeds 15%, which historically indicates a downward movement
DeFi and ETH2.0 could be the reasons why ETH on trade is low
As mentioned above, the low percentage of ETH on exchanges is particularly bullish for Ethereum holders. This could mean that Ethereum investors are securely storing their ETH offline in anticipation of the launch of ETH2.0 which could push Ethereum’s price up to new levels.
Additionally, some may make good use of their dormant ETH by freezing funds across the various DeFi platforms. A quick glance at DeFiPulse.com reveals that a total of 8.9 million Ethereum is stuck on DeFi platforms. This is approximately 7.84% of the total circulating offer of 113.4 million ETH.
In summary, fewer and fewer Ethereum investors are storing their ETH on crypto exchanges. This fact is particularly bullish as it indicates less selling pressure for Ethereum at least in the short term.
Those who choose to store their Ethereum exchanges externally could do so in anticipation of the launch of ETH2.0 which begins on December 1st. This event should usher in a transition period for Ethereum towards a Proof-of-stake network. There may also be a huge percentage of Ethereum investors who are using their ETH to capitalize on yield farming on various DeFi protocols.