Ethereum Supply On Exchanges Has Continued To Decline Recently
As per the on-chain analytics firm , ETH continuing to leave exchanges can be good news for the cryptocurrency. The “supply on exchanges” is an indicator that measures the total amount of Ethereum that’s currently sitting in the wallets of all centralized exchanges.
When this metric’s value increases, investors transfer a net number of coins to exchanges. Since one of the main reasons holders may deposit their coins to exchanges is for selling purposes, this trend can have bearish implications for the asset’s price.The value of the metric seems to have sharply gone down in recent days | Source:
As shown in the above graph, the Ethereum supply on exchanges measured around 19.12 million ETH back on the 14th of September 2022, the date of the much-hyped Merge, which successfully transitioned the network consensus mechanism to a proof-of-stake (PoS) one.
Since then, the indicator has observed a significant decline, leading to the number of exchanges still left today being just 13.36 million ETH. Regarding capital loss, today’s exchange supply is worth about 37% less than it was during the Merge. And in terms of the pure difference in the total number of coins, these platforms today hold about 30% less Ethereum supply than on the date of the PoS upgrade. Santiment thinks this is good news for the Ethereum market, as the available selling supply has continuously shrunk in recent months.The price of Ethereum has registered a decline in the past week. Still, as is visible in the graph, the Ethereum supply on exchanges has seen a noticeably sharper decline following this price dip, which may be a sign that investors are accumulating more while ETH is at a “discount.”
ETH Price
At the time of writing, Ethereum is trading around $1,500, down 8% in the last week.It looks like the value of ETH hasn't moved much in the last few days | Source: