The supply of Ethereum on major cryptocurrency exchanges is dwindling. The world’s second-largest digital asset is being moved from exchanges to cold wallets by ETH whales. According to the most recent data from Santiment, a leading crypto analytics and on-chain analysis firm, Ethereum supply on crypto exchanges has dropped to its lowest point in 34 months.
Crypto exchanges now hold 16.1 % of Ethereum’s total supply, compared to 24.1 percent on September 26, 2020. The latest data, according to Santiment, is also an encouraging indicator for long-term holders of the world’s second most valued cryptocurrency. “Ethereum has recovered to $3,163. In the last year, around one-third of the ETH supply that was on exchanges has been removed. Santiment stated, “This is a good indicator for patient holders.”
A well-known Ethereum whale account moved 100,000 ETH coins from Huobi to an unknown crypto wallet yesterday. The transaction is estimated to be worth around $300 million, according to Whale Alert. On Sunday, 20,814 Ethereum coins worth more than $60 million were transferred from Binance to an unknown wallet.
During the first three weeks of September 2021, the price of Ethereum was extremely volatile. Following a high of over $4,000 on September 3, ETH plummeted in price over the next few days, reaching a monthly low of $2,700 on September 22. However, Ethereum has recovered quickly in recent days, and the digital asset is now trading at $3,100. With a market capitalization of more than $365 billion, ETH is trading near $3,110 at the time of writing.
“ETH hit a weekly low on Wednesday, touching $2,700 before a climb back up to over $3,100. Following its own fall of over 9% on Friday, ETH then stabilized along with Bitcoin (BTC) over the weekend and was trading again at over $3,100 this morning after strong gains on Sunday.”
Simon Peters, Market Analyst at eToro, commented on Ethereum’s recent price action.