- Ethereum supply on exchanges reached an all-time low, with only 10.1% of the total supply available for trading.
- Despite liquidations, investors remain optimistic about the future of Ethereum as the exchange rate is still positive.
After the remarkable 6% increase in value on May 5, Ethereum [ETH] has embarked on a consistent downward trajectory. Still, falling price isn’t the only metric that’s taken a dip recently; another crucial supply metric also steadily declined.
Read Ethereum (ETH) Price Forecast 2023-24
Ethereum supply on exchanges drops to ATL
At the time of writing, Ethereum was trading at around USD 1,760, reflecting a loss of more than 1%. According to the daily time frame chart, this decline has continued for the past seven consecutive days.
In addition to the price drop, there was also a notable decrease in the supply of ETH available on exchanges, according to data from Sanitation.
Source: Sentiment
Current supply on exchanges accounted for about 10.1% of total supply, marking the lowest level since ETH trading began in 2015.
This statistic suggested that more individuals chose to self-serve ETH. It also meant that the number of assets held off exchanges reached an all-time high.
Negative Netflow dominates the Ethereum flow
Examining the flow of Ethereum on exchanges can provide valuable insights into the dwindling supply situation.
The Netflow metric on CryptoQuant revealed that there has been a notable increase in exchange outflows over the past few days.
However, at the time of writing, the Netflow was positive, albeit significantly lower than the negative Netflows that have prevailed over the past few days.
Source: CryptoQuant
In addition, an analysis of the statistic indicated that more Ethereum exchanges have left than entered since the beginning of the year.
This suggested that holders were actively securing the custody of their assets for a significant period of time. Also, the recent price drop may have reinforced this trend.
Despite liquidations, investors remain positive
According to data from Mint glass, Ethereum’s 24-hour liquidation volume exceeded $30 million. Interestingly, most of the liquidations occurred on the long side, totaling more than $50 million, while the short side was around $14 million.
However, despite these liquidations, the current funding ratio suggested that investors remained optimistic. At the time of writing, the funding rate remained positive across all exchanges, indicating that most investors expected a price hike soon.
Source: Coinglass
How much are 1,10,100 ETHs worth today
It remains uncertain whether an increase in the price of Ethereum will prompt more individuals to return their assets to exchanges. However, this could probably happen.
Nevertheless, investors seem content to stick with their Ethereum at the moment.
