{"id":477750,"date":"2021-11-30T19:00:05","date_gmt":"2021-11-30T19:00:05","guid":{"rendered":"https:\/\/uniquehot.com\/?p=477750"},"modified":"2021-11-30T14:09:24","modified_gmt":"2021-11-30T14:09:24","slug":"ethereum-supply-on-exchanges-reaches-new-low-of-14","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/ethereum\/ethereum-supply-on-exchanges-reaches-new-low-of-14\/","title":{"rendered":"Ethereum Supply On Exchanges Reaches New Low Of 14%"},"content":{"rendered":"
On-chain data shows that the percentage of Ethereum supply present on exchanges has set new lows of around 14%.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the ETH supply present on exchanges has been going down since a while now. It has now hit new lows of about 14%.<\/p>\n The “percentage supply on exchanges” is an indicator that shows the share of the total Ethereum supply stored in wallets of all exchanges.<\/p>\n Usually, this supply present on exchanges is said to be the selling supply of ETH, and so if the indicator’s value goes up, it means there is a higher number of coins in the available sell supply.<\/p>\n Due to supply-demand dynamics of the market, this kind of trend can prove to be bearish for the cryptocurrency’s price.<\/p>\n On the other hand, if the metric’s value moves down, it implies the available supply of Ethereum has reduced. Prolonged such trend can create a supply shock<\/a> in the market, which can turn out to be bullish for the coin’s price.<\/p>\n Related Reading |\u00a0Exchanges See Bitcoin Outflows For 7th Straight Day As BTC Price Begins Recovery<\/a><\/strong><\/em><\/p>\n Now, here is a chart that shows the trend in the percentage of total ETH supply on exchanges in the past year:<\/p>\n <\/p>\n As you can see in the above graph, the percent ETH supply on exchanges has shown a steady downtrend during the entire year so far.<\/p>\n Currently, the value of the indicator sits around 14%, a new low. At the start of the year, the metric’s value was about 21% so that in the past year 7% of ETH supply has been taken off exchanges.<\/p>\n Related Reading |\u00a0Ethereum Scarcity: After London Fork, ETH’s Supply Change Drops To Almost Zero<\/a><\/strong><\/em><\/p>\n Also, back in May, when the price of Ethereum was at similar levels as now, the metric’s value was around 18%, a sizeable difference. Because of this the analyst believes that the current supply shock isn’t fully reflected in the price yet. And that it won’t be long until a difference is seen.<\/p>\n At the time of writing, Ethereum’s price<\/a> floats around $4.6k, up 10% in the last seven days. Over the past month, the crypto has gained 5% in value.<\/p>\n The below chart shows the trend in the price of the coin over the last five days.<\/p>\n <\/p>\nLooks like the indicator's value has been gradually going down | Source: CryptoQuant<\/a><\/pre>\n
ETH Price<\/h2>\n
ETH's price looks to be recovering from the crash | Source: ETHUSD on TradingView<\/a><\/pre>\n