- Ethereum Supply Hits 10-Year Low with only 4.9% of Ethereum’s total supply held on exchanges
- ETH’s price has risen by 5.5% in 24 hours, and analysts believe the shrinking supply could push prices toward $5,000.
Ethereum, for the first time in the last decade, has less than 4.9% of its total supply being held on exchanges. This drop has shown a shift in investors’ behavior, with different people believing that whales and long-term holders are beginning to move ETH off trading platforms into cold storage, staking, or DeFi protocols.
According to details shared by Santiment on the 19th of May, only 4.9% of Ethereum’s total supply is on exchange platforms, and this is officially the lowest in the network’s 10-year history. It also covered that within the last five years, about 15.3 million ETH have been taken off exchanges, likely moved to cold wallets, long-term storage, or held by institutions.
Ethereum’s Momentary Growth and Possible Bullish Breakout
Ethereum is beginning to show strong signs of recovery. In the last 24 hours, the ETH price has surged by 5.5%, rising from $2,579 to over $2,584, with its market cap surpassing $305 billion. This price jump came immediately after the amount of ETH supply dropped by 4.9%. With fewer coins available to buy and sell, many people think there might be a shortage coming that could push prices up.
source: coingecko
Some analysts also believe that ETH’s growing shortage could drive the price up to and even get to $5,000. On-chain activity shows that large holders, each with over 10,000 ETH, have added more than 450,000 ETH since late April, bringing their total to 40.75 million by May 10.
Institutions are also increasing their ETH holdings, with U.S. spot ETH ETFs receiving $30 million in inflows over the last month. Meanwhile, BlackRock’s holdings have grown past $2.9 billion, reflecting strong demand.
The recent changes in leadership at the Ethereum Foundation with the introduction of Hsiao-Wei Wang, Tomasz K. Stańczak, and a new president could help speed up Ethereum’s recovery and give it a clearer direction for the future.
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