Ethereum Exchange Supply Drops to 10-Year Lows Despite Price Issues
Ethereum (ETH) seems to be seeing very little selling pressure at the moment, despite recent price difficulties.
Since Ethereum has significantly underperformed its peers in recent years, it has been the focus of constant jokes among cryptocurrency enthusiasts. Its price issues have only become worse over the last two months as the cryptocurrency market has been going through a difficult period.
ETH has dropped more than 40% over the past year, whereas Bitcoin has increased by 25% and XRP has increased by around 300%. It might not be all bad news for the asset, though.
Nearly No Selling Pressure on Ethereum?
Ethereum appears to be under unusually little selling pressure right now, despite recent price difficulties.
In particular, cryptocurrency monitoring firm Santiment Feed reports that the amount of Ethereum available on exchanges is at its lowest levels in a decade.
Santiment revealed in an X post on Thursday, March 20, that there were just 8.97 million ETH on controlled exchanges, the lowest since November 2015, after a 16.4% decline over the previous seven weeks.
Since it indicates that only 7.4% of the almost 121 million Ethereum supply is accessible for purchase, this decline in the exchange’s supply can be viewed as highly optimistic.
Why the Supply of ETH Exchange Is Declining
Sentiment pointed out that holders’ DeFi and staking actions are to blame for the current drop in Ethereum supply on exchanges. Through yield-generating opportunities, these tactics could assist holders in mitigating some losses during periods of dropping market prices.
As of this writing, ETH is down 2% for the day at $1,971.66, as risk markets remain muted by macroeconomic concerns.
It seems doubtful that ETH will be impacted by any limitations in exchange supplies until these circumstances improve and demand for risky assets increases.
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