The share of Ethereum on cryptocurrency exchanges has dropped to a record low, accounting for less than 4.9% of the total supply. This level has not been seen since the asset’s launch over ten years ago, analysts from Santiment reported.
This is reported by Finway
Amid the declining volumes of Ethereum on exchanges, Bitcoin is also showing its lowest supply since November 2018, with only 7.1% of all coins held on centralized platforms.
“Ethereum has under 4.9% of its supply on exchanges for the first time in its 10+ year history. And Bitcoin’s supply on exchanges is down to just 7.1% for the first time since November, 2018.”
Over the past five years, approximately 1.7 million Bitcoins and over 15.3 million ETH have been withdrawn from cryptocurrency exchanges, according to analysts’ data.
Ethereum Trading Activity
Analysts at CryptoQuant have also noted an increase in Ethereum trading activity around the $2500 price point. They observe that trading volumes have surged, leading to the classification of the market as “overheated.” This state, according to experts, is often accompanied by profit-taking and the activation of “old” coins in investors’ portfolios.
Such trends may indicate a potential short-term correction. After this, Ethereum is likely to enter an accumulation phase, awaiting new demand that could push the price above a significant psychological level.
Ethereum Roadmap Update
Recall that earlier, Ethereum co-founder Vitalik Buterin announced an update to the network’s development roadmap, which aims to simplify the launch of local full nodes without compromising Ethereum’s scalability.