While the second-largest crypto asset by market cap has gained more than 15% in value against the U.S. dollar during the last week, the number of ethereum stored on exchanges has dropped significantly during the last few weeks. In less than two years, more than 29% of the ether held on exchanges has left centralized trading platforms and since December 2021, roughly 5.89% or 1.51 million ether has left exchanges.
The number of Ethereum on exchanges continues to drop
Seven days ago, Bitcoin.com News reported on the number of bitcoins (BTC) held on exchanges and how the metric fell to a three-year low. Interestingly, the same trend occurred with the number of Ethereum (ETH) stored on exchanges.
At the time of writing, the amount of ethereum stored on exchanges today is 24.09 million ethereum worth $71.3 billion. The quantity or the number of ether kept on exchanges today is the lowest amount since December 1, 2018, or just over three years ago.
Cryptoquant.com’s exchange balance data statistics show that in the first week of August 2020, there were over 34.2 million Ethereum stored on exchanges. At this time in 2020, ETH was trading hands for $375 per token, meaning trading platforms held $12.8 billion worth of ethereum.
Using today’s exchange rates, the 34.2 million equates to more than $101 billion worth of ethereum (ETH). From that point in time up until today, 29.56% of the 34.2 million left exchanges.
Indeed, since December 2021, 5.89% of the number of ethereum held on exchanges (25.6 million ethers at the time) left the centralized trading platforms. Data collected by Bituniverse, Peckshield, Etherscan, and Chain.info indicates that as of March 19, 2022, Binance holds 3.59 million Ethereum (ETH) worth $10.5 billion.
Huobi Global holds 2.13 million ether worth $6.25 billion, Kraken stores 2.27 million ether worth $6.6 billion and Okex commands 364,630 ether worth $1 billion today.
The current data that shows Ethereum (ETH) leaving exchanges is a good sign for supporters as it indicates that users are taking advantage of non-custodial storage solutions. With less ETH being held on the exchanges, the selling pressure is also decreasing and causing the liquidity on the exchanges to decrease as well.
Additionally, a large number of ethereum is now being dedicated to staking solutions, and the recent downfall of ethereum exchange balances suggests significant quantities of ether may be dedicated to staking operations.
