Ethereum News: According to Glassnode’s analysis, the amount of Ethereum on the stock exchanges fell to its lowest level in almost two years.
Glassnode estimates that only 13.3 millions of Ethereum are currently held on centralized exchanges, the lowest level since June 2019. As such, centralized platforms have ETH worth approximately $ 52.4 billion, or 11.5% of ethereum offers.
The number of ETHs on centralized exchanges fell by 30% in 9 months, reaching a peak of 19 million ETHs in September 2020.
Ethereum News – will situation on centralised exchanges harm ETH?
The low ETH balance on the stock exchanges is usually seen as bullish for the markets, leading to a reduction in supply compared to demand on popular trading platforms. Declining exchange balances suggest that long-term investors are moving their assets to a safe deposit box or locking their funds to earn returns through decentralized financial protocols or deposits.
Investors are trading Bitcoin for Ethereum
In its Monday report “Week on Chain,” the data provider also noted that there had been some reduction in exposure to Bitcoin in favor of Ethereum.
Glassnode correlated with the spending behavior of reasonably old unused bitcoin transaction outputs between 6 months and three years and found evidence that long-term investors could recently turn to ETH:
“EVEN THAT IT IS ONLY EMPIRICAL OBSERVATION (CORRELATION CAUSES), A SIGNIFICANT INCREASE IN THESE OLD BTC RETURNED INTO CIRCULATION AFTER A LONGER TIME OF HOLD IS A CONVINCING CASE.”
The report added that on-chain activity at Ethereum had risen sharply over the past four weeks amid recent bull pricing. The total number of smart contracts, Uniswap transactions, and daily transactions have increased significantly since the beginning of the year.
Daily transactions reached a historic high of 1.63 million this week, an increase of 22.5% from the previous peak in December 2017.
At the time of writing, Ethereum is trading just above $ 3,900, a slight cooling from the recent all-time high of $ 4,220 on May 10. However, the predictions are optimistic and predict and continue to grow this cryptocurrency.