[Analysis] "Ethereum exchange reserves effectively back to 2016 levels…supply-structure shift in focus"

Source

Suehyeon Lee

Summary

It said Ethereum’s exchange reserves are staying within a range similar to the spot supply at mid-2016 levels.
It said that with the network’s scale and usage expanding, the amount circulating on exchanges appears to be near historical lows.
It noted that if exchange-held Ethereum falls further and even OTC supply is depleted, new price dynamics could form on the supply side.

Forecast Trend Report by Period

An analysis has found that Ethereum (ETH) holdings on exchanges have effectively reverted to mid-2016 levels.

On the 8th (local time), CryptoQuant contributor CoinNiel said that "Ethereum’s exchange reserves have recently been showing a more structural shift," adding that "since its launch in 2015, the share held on exchanges has steadily declined, and the amount currently remaining on exchanges is staying within a range similar to the spot supply level observed in mid-2016."

Given that the network’s scale and usage have expanded significantly compared with that period, some argue that the relative amount circulating on exchanges is near historical lows.

While Ethereum’s OTC (over-the-counter) holdings have risen somewhat recently, they remain limited compared with the amount still held on exchanges. The market is watching the possibility that if exchange-held Ethereum declines further and even OTC supply is depleted, new price dynamics could emerge from the supply side.

However, as it remains uncertain whether today’s low level of exchange reserves can persist for an extended period, continued monitoring of on-chain flows is needed, the analysis said.

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