ETH Continues to Leave Trading Platforms, Ethereum Balance on Exchanges Lowest in 3 Years
While the second-largest crypto asset by market cap has gained more than 15% in value against the U.S. dollar during the last week, the number of ethereum stored on exchanges has dropped significantly during the last few...
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Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
While the second-largest crypto asset by market cap has gained more than 15% in value against the U.S. dollar during the last week, the number of ethereum stored on exchanges has dropped significantly during the last few weeks. In less than two years, more than 29% of the ether held on exchanges has left centralized trading platforms and since December 2021, roughly 5.89% or 1.51 million ether has left exchanges.
Number of Ethereum on Exchanges Continues to Drop
Seven days ago, Bitcoin.com News reported on the number of bitcoin (BTC) held on exchanges and how the metric dropped to the lowest point in three years. Interestingly, the same trend has been happening with the number of ethereum (ETH) stored on exchange platforms.
At the time of writing, the amount of ethereum stored on exchanges today is 24.09 million ethereum worth $71.3 billion. The quantity or the number of ether kept on exchanges today is the lowest amount since December 1, 2018, or just over three years ago.
Statistics from cryptoquant.com’s exchange balance data show during the first week of August 2020, there was more than 34.2 million ethereum stored on exchange platforms. At that time in 2020, ETH was exchanging hands for $375 per token which means trading platforms held $12.8 billion worth of ethereum.
Using today’s exchange rates, the 34.2 million equates to more than $101 billion worth of ethereum (ETH). From that point in time up until today, 29.56% of the 34.2 million left exchanges.
In fact, since December 2021, 5.89% of the number of ethereum held on exchanges (25.6 million ether at the time) have left the centralized trading platforms. Data collected by Bituniverse, Peckshield, Etherscan, and Chain.info indicates that on March 19, 2022, Binance holds 3.59 million worth of ethereum (ETH) valued at $10.5 billion.
Huobi Global holds 2.13 million ether worth $6.25 billion, Kraken stores 2.27 million ether worth $6.6 billion and Okex commands 364,630 ether worth $1 billion today.
The current data that shows ethereum (ETH) leaving exchanges is a good sign for supporters as it indicates users are leveraging non-custodial storing solutions. With less ETH held on exchanges, selling pressure also dwindles and makes liquidity shrink on exchanges as well.
Additionally, a large number of ethereum is now being dedicated to staking solutions, and the recent downfall of ethereum exchange balances suggests significant quantities of ether may be dedicated to staking operations.
What do you think about the balances of ethereum on exchanges today and how they are currently at the lowest point in three years? Let us know what you think about this subject in the comments section below.
Why this matters
This ethereum story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
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