Ethereum exchange holdings at lowest since 2016…"Institutional accumulation accelerates"

Suehyeon Lee

Summary

It reported that Ethereum's centralized exchange holdings have fallen to their lowest level since 2016.
The decrease in exchange holdings was said to be due to strengthened institutional buying of Ethereum recently.
The decline in holdings suggests that market sell pressure has decreased and Ethereum is moving toward long-term storage and yield-generating uses.

The amount of Ethereum (ETH) deposited on centralized exchanges has fallen to its lowest level since 2016.

On the 25th (local time), according to Glassnode data cited by Cointelegraph, Ethereum's exchange holdings have steadily declined since mid-2020, falling to about half over the past two years. In particular, since mid-July they have decreased by nearly 20%, and current exchange holdings are estimated at 14.8 million ETH.

CryptoQuant's exchange supply ratio is also 0.14, the lowest level since July 2016. This refers to the ratio of exchange balances to total supply, suggesting that sell pressure available in the market has significantly decreased.

The decrease in exchange holdings is analyzed as being due to strengthened institutional buying of Ethereum. Typically, a decrease in exchange holdings means assets have moved to cold wallets, staking, DeFi, etc., being used for long-term storage or yield generation. Conversely, when exchange balances increase, it is interpreted as a signal of sell preparation.

ETH