Ethereum balance on exchanges drop to historic low, reduces risk of major sell-off
According to a tweet from data research firm Santiment, the number of Ethereum on crypto exchanges has dropped to historic levels.
Santiment reports that the total balance of Ethereum on trading platforms has fallen below 18 percent, hitting levels that were last seen in November 2018. The firm believes that investors are moving their ETH stash into cold storage, and by so doing have lowered the likelihood of a major ETH sell-off in the near future.
📉👍 To kick off July, #Ethereum holders continued to make history by lowering the percent of $ETH held on exchanges to its lowest ratio since November, 2018. Dropping below 18% for the first time in 31 months lowers the risk of a future major selloff. https://t.co/h7WmA7IoEI pic.twitter.com/rfyT9lwBHy
— Santiment (@santimentfeed) July 2, 2021
As of press time, Ethereum was exchanging hands at around $2,000, a decline of over 50% from its all-time high value. As per data provided by CoinMarketCap, the second-largest crypto by market cap, set a record high of $4,362 on May 12.
But despite the recent market correction, Ethereum has recorded a year-to-date growth of over 40 percent. The digital asset began the year with a price tag of $1,368, eventually seeing a growth of 221 percent when it reached its ATH in May.
There have been increasing theories that Ethereum could outpace Bitcoin. A few days ago, the Ethereum network outperformed Bitcoin in address activity. Investor confidence in the digital asset appears to be building up as the network draws close to its London upgrade.
