Ethereum reserves on centralised exchanges has plummeted by over 27% in two days, increasing scarcity of the so-called ‘digital oil’ cryptocurrency asset.
The amount of Ethereum held on exchanges has plunged over the past 48 hours, with data from data provider CryptoQuant indicating that just 8.1 million ETH is currently sitting in centralised exchange reserves.
This acceleration of ETH being moved off exchanges can be attributed to a shift in market dynamics, which began on January 14, in which 11 million were moved off the exchange in 24 hours. If the rate continues – however unlikely that may be – exchanges will run out of Ethereum in a little over a week.
Glassnode media, another data provider indicates that balances have fallen by 42.5% since tagging an all-time high of 14.1 million in mid-May 2020.
In fact, Ether reserves on centralised exchanges haven’t been this low since July 2018.
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At the time of publishing, about 7% of ETH’s circulating supply is held on exchanges.
Should the trend continue apace, an explosive move could be in the works, similar to what’s happened to bitcoin.
Data from CryptoQuant shows that bitcoin exchange reserves have fallen 21% since posting all time highs of nearly three million in March 2020. However, the acceleration of Ether being removed from centralised exchanges is clearly more dramatic as investors hastily move their Ethereum to various wallets.
For comparison, bitcoin exchange reserves fell by 4.5% since October 21st, and its price surged 230% since then – from about $12,000 to $40,000.
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