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Analyst: ETH Holdings on CEX Platforms Drop to Historic Low of 8.8%, Supply Tightness May Drive Price Increase
Summary: In breaking news, according to a report by Cointelegraph, analyst Milk Road stated that the amount of ETH stored in centralized cryptocurrency exchanges has dropped to an unprecedented low, potentially leading to supply tightness. Based on Glassnode data, the amount of ETH held on exchanges is at a low of 8.8%, the lowest level since ...
In breaking news, according to a report by Cointelegraph, analyst Milk Road stated that the amount of ETH stored in centralized cryptocurrency exchanges has dropped to an unprecedented low, potentially leading to supply tightness. Based on Glassnode data, the amount of ETH held on exchanges is at a low of 8.8%, the lowest level since the network went live in mid-2015.
Since early July, the amount of ETH on exchanges has decreased by 43%, coinciding with an accelerated growth in Digital Asset Treasury (DAT) purchases. In contrast, the amount of Bitcoin held on exchanges is higher at 14.7%. Milk Road believes that ETH is increasingly being locked into areas that are difficult to sell, such as staking, re-staking, layer 2 network activities, DAT, collateral loops, and long-term custody, indicating that tightening supply could drive price increases.
"Currently, market sentiment is low, but market sentiment does not determine supply. ETH supply is quietly tightening, and the market is deciding the next move. When this gap closes, prices will rise accordingly."
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Link: Analyst: ETH Holdings on CEX Platforms Drop to Historic Low of 8.8%, Supply Tightness May Drive Price Increase [Copy]
