The tradable supply of Ethereum on crypto exchanges has fallen to an all-time low. Only 3.49% of ETH is now held on tracked platforms
In fact, new data from Santiment reveals that an additional 1.16% of ETH supply has left these trading platforms since June 1.
Decrease in supply
This summer, exchange balances had already fallen to their lowest levels since the early years of Ethereum. This drop means that fewer ETH tokens are immediately available for trading or selling. However, a lower foreign exchange supply does not guarantee an increase in its price.
Saint explain that a major reason behind this is the growing use of ETH in staking and DeFi. It is estimated that around 35% of Ethereum is staked. The network also has around $53 billion locked in DeFi, giving holders more ways to earn yield or keep their coins active on-chain.
To top it off, long-term holders are also keeping more ETH off exchange order books. Large holders of Treasury securities are adding to this trend. BitMine, for example, said it had staked over 5 million ETH earlier this month.
If demand for crypto assets increases while exchange supply remains limited, buyers could have fewer readily available coins to purchase.
Network demand remains strong
Ethereum has been one of the best performing assets. It rose from around $1,900 to $2,800 in the span of a month before falling back towards $2,660. Despite this, its network business is showing signs of strength. CryptoQuant reported that of Used Gas currently stands at around 217.1 billion, up 0.26%. The slight increase suggests that demand for Ethereum block space did not fall sharply during the price correction.
Priority fees show a stronger evolution as the latest figure stands at almost $464,000, up 26.74% over the last day. Priority fees are payments made by users to encourage faster processing of transactions. This sharp increase means users are competing more for available block space.
This indicates continued activity across the network. At the same time, the number of blocks mined remains virtually unchanged at around 7,147, essentially indicating that the fee hike is not coming from a major increase in block production. Instead, existing blocks are experiencing higher demand and greater fee competition.
According to CryptoQuant, the $2,600-$2,650 area remains an important support zone for the leading altcoin. If ETH manages to maintain the level while network activity and priority fees remain high, it could potentially move back towards the $2,700-$2,800 range.
The post Ethereum is Fast Disappearing from Exchanges: Here’s Where All the ETH Goes appeared first on CryptoPotato.
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