Summary
- "It reported that the supply of Ethereum (ETH) on exchanges is rapidly decreasing, raising the possibility of a supply shock."
- "It explained that Ethereum's exchange holding ratio is 8.84%, only half that of Bitcoin (BTC), and that this is because most are locked by staking."
- "Glassnode said Ethereum is actively used in DeFi and staking, and the remaining supply on exchanges is likely to continue decreasing."
Ethereum (ETH) is leaving exchanges at a faster pace than Bitcoin (BTC). Analysts have suggested that if this trend continues, a supply shock could occur.
On the 5th (Korean time), crypto outlet Cryptopolitan, citing data from blockchain analytics firms Glassnode and CryptoQuant, reported that Ethereum's current exchange holding ratio is 8.84%, only about half that of Bitcoin (14.8%).
The fact that most Ethereum is locked in staking is a major factor. Leon Widmann, an OnchainHQ analyst, explained, "The main reason Ethereum's supply is decreasing on exchanges is that most Ethereum is locked up by staking." He added, "DeFi is pulling Ethereum away from exchanges, and long-term holders are not selling their Ethereum."
Ethereum's supply could decrease further. Glassnode said, "Ethereum is an asset actively used in the DeFi ecosystem and staking," and added, "The trend of the amount remaining on exchanges is likely to continue decreasing."
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