The supply volume of Ethereum on cryptocurrency exchanges has reached its lowest level in the last 28 months amid growing demand for the second largest cryptocurrency.
According to analyst firm Santiment, the ratio of Ethereum (ETH) supply on exchanges to total cryptocurrency supply is at a 28-month low.
In particular, the percentage of ETH on exchanges fell below 20%. This is the lowest value since the start of statistics.
A year ago, the ratio reached a record high of 27%. Then the volume of supply began to decline against the background of the formation of a bullish trend in the market.
https://twitter.com/santimentfeed/status/1373497148055126016?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
When ETH stocks were at their peak, the coin could be bought for as little as $ 110. At the time of writing, ETH is trading in the $ 1,788.56 area. Moreover, a few weeks ago, ETH broke its all-time high at $ 2,042.93
The availability of Ethereum on exchanges is falling, likely due to growing demand from institutional investors.
For example, Grayscale Investments operates an Ethereum-based fund – the Grayscale Ethereum Trust (GETH). It attracts large investments from institutions.
In trust now ETH governed by worth almost $ 5.7 billion. This is 2% of all coins in circulation.
Moreover, GETH is the second most popular trust managed by an investment company. In first place is the flagship Grayscale Bitcoin Trust. Its popularity has prompted Grayscale to buy millions of dollars worth of bitcoins all the time.
https://twitter.com/Grayscale/status/1373011329708126217?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
The two leading cryptocurrencies are attracting cash flows from institutions, but other coins are getting their share of attention as well.
For example, Chainlink (LINK) is also in short supply on exchanges. It arose after Grayscale announced plans to launch a LINK-based trust.
It is possible that the market is waiting for an influx of institutional investment in this coin.
In addition, the same study found that the supply of Bitcoin (BTC) on the leading exchanges is also falling. Earlier it was reported that bitcoin miners accumulate coin instead of selling.
If the shortage of supply persists and demand continues to grow, a strong bullish stimulus will form in the market.
Perhaps, very soon, we will see new heights.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.
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