The percentage of ETH being held on the crypto exchange is at 13.35% of total supply in circulation – lowest since November 23rd, 2018
According to statistics from Santiment, the amount of ETH held on cryptocurrency exchanges is currently at 13.35% of the total circulating supply. With the aforementioned figures, this is the lowest level since November 23, 2018.
2) exchanges is kept low. It indicates that large whale selloff probabilities will remain limited. With a PRO account, you can watch in real-time to see if $ETH‘s % of supply on exchanges creeps over 15%, which historically indicates downside movement. https://t.co/Ol8lgiZjPk
— Santiment (@santimentfeed) November 13, 2020
The proportion of ETH held on the cryptocurrency exchange is 13.35% of the total circulating supply; why?
To understand why this rate is so low, perhaps we have to consider the first factor: the level of trust investors have in exchanges. Such a low ratio of ETH on exchanges also means whales won’t sell their Ethereum, at least in the short term. A sell-off usually occurs when the value is above 15%.
The Santiment report stated:
“It indicates that large whale selloff probabilities will remain limited… if $ ETH thes% of supply on exchanges creeps over 15%, which historically indicates downside movement.”
In addition to the low Ethereum ratio 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 Ethereum 2.0, most likely bringing the price of Ethereum to new heights.
Additionally, some may be making good use of their ETH amount by locking in money in various DeFi platforms. According to DeFiPulse.com, a total of 8.9 million Ethereum is locked on the DeFi platform. This is about 7.84% of the total circulating supply of 113.4 Million ETH.
In a nutshell, less and less Ethereum investors are storing their ETH on cryptocurrency exchanges. This fact is particularly optimistic as it points to selling pressure on Ethereum, at least in the short term.
Those who choose to store their Ethereum outside of exchange can do so in anticipation of the launch of ETH2.0 starting December 1. This event opens a transition period for Ethereum to a Proof-of-stake network. It is also possible that a large percentage of Ethereum investors are using their ETH to take advantage of profits on various DeFi protocols.
You can see the Ethereum price here.
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