The second-largest cryptocurrency, Ethereum (ETH), has broken a significant record: the proportion of its supply held on centralised exchanges is at an all-time low. This is typically interpreted by experts as an optimistic midterm indication.
Ethereum (ETH) supply shock coming, this metric says
The amount of Ethereum (ETH) supply held on global centralised exchanges dropped to its lowest point in the asset’s existence. According to Glassnode statistics, as of late August 2024, just 9.75% of Ethers (ETH) are located on CEXes.
Less than one out of every ten coins being placed on centralised exchanges for the first time since Ethereum (ETH) was made publicly available.
The Head of Research at Onchain Foundation, Analyst Leon Waidmann, is enthusiastic about this process’s potential to influence the future dynamics of the price of ETH:
We don’t have enough confidence. The possibility of an Ethereum supply shock exists as long as this process keeps up.
https://x.com/LeonWaidmann/status/1828063407305564442
The amount of Ethereum (ETH) supply held on global centralised exchanges dropped to its lowest point in the asset’s existence. According to Glassnode statistics, as of late August 2024, just 9.75% of Ethers (ETH) are located on CEXes.
In order to fix gains throughout its current price ATH, the Ethereum (ETH) community last sent ethers to CEXes in March 2024.
The desire to remove Ether from exchanges is similar to sellers’ indifference: an increasing number of Ether holders will hold onto their Ether in order to sell it for a higher price.
Ethereum (ETH) gas price lost 85% in last year
The amount of Ethereum (ETH) supply held on global centralised exchanges dropped to its lowest point in the asset’s existence. According to Glassnode statistics, as of late August 2024, just 9.75% of Ethers (ETH) are located on CEXes.
The price of Ethereum (ETH), which has dropped 1.6% in the past day, is currently fighting to remain above $2,810. Moreover, the daily trade volume decreased by 3.65%.
There is another significant tendency that goes hand in hand with the process of ETH’s share on CEXes declining. With petrol costs expected to reach all-time lows in August 2024, using Ethereum (ETH) has never been more affordable.
The average petrol price for Ethereum (ETH) has decreased to 2.6 Gwei; at this time, transmitting ETH transactions at the standard speed costs around $0.28.
This statistic was above 16 Gwei a year ago: Ethereum (ETH) gas decreased as a result of network improvements and a decrease in on-chain activity on Ethereum’s L1.
