According to the analysis of on-chain data source Glassnode, the amount of Ethereum in exchanges has dropped to the lowest level in the last two years.
Glassnode estimates that only 13.3 million units of Ether are currently held on central exchanges. This number has been the lowest since June 2019. It has been announced that there are roughly $ 52.4 billion worth of ETH on the central platforms, which corresponds to 11.5 percent of the total Ethereum supply.
View metric:https://t.co/1dCpD2ey8E pic.twitter.com/FGZHqXr3Pa
— glassnode alerts (@glassnodealerts) May 10, 2021
The number of Ether on central exchanges has dropped 30 percent in 9 months since it hit 19 million ETH in September 2020.
The presence of a small amount of ETH in stock exchanges is often considered together with an upward expectation for the markets, as it leads to a decrease in supply compared to demand on popular trading platforms. The decline in stock exchanges indicates that long-term investors are pulling their assets into cold wallets or locking their funds to gain returns through decentralized finance (DeFi) protocols or staking.
The data provider added in Monday’s report that as the price of Ether rose, the amount of on-chain transactions increased significantly. The total number of daily transfers, as well as smart contract and Uniswap transactions, have also seen significant increases since the beginning of the year.
Daily transactions hit an all-time high of 1.63 million this week, up 22.5 percent compared to the peak in December 2017.
At the time of preparation for the news publication, the Ethereum price was around $ 3,900. The most valuable altcoin hit its all-time high of $ 4,220 on May 10.