The supply of Ethereum on leading cryptocurrency exchanges hits a 28-month low as demand for coins rises
Ethereum (ETH) is the second largest digital currency in the world and one of the most widely used. Ether is used for various functions on the Ethereum blockchain, including NFTs, DeFi, and ICOs.
Because of its massive usage, it is an important coin. However, the rally in Ether over the past few months has also convinced people to buy and hold it for the long term. Therefore, the offer of ETH on the most important cryptocurrency exchanges has decreased.
ETH supply of crypto exchanges hit a 28-month low as demand continues to rise. According to data from cryptanalysis firm Santiment, the cryptocurrency has seen exponential demand in recent months.
Santiment tweeted about it and said: “The Ethereum quota of the token offer on the exchanges (20.1%) is now at a 28-month low. We generally expect a relative decline in the forex supply compared to previous months as an indication of security from larger isolated crypto-asset sell-offs. “
The analyst said the percentage of ether exchanged fell to 20%, the lowest in more than two years. Around a year ago, ETH’s stock exchange offering reached a record high of 27% as the coronavirus pandemic affected the global financial market. However, in the rally in the cryptocurrency market last year, ETH hit a new all-time high of over $ 2,000.
Ether’s scarcity could be due to the increased institutional interest it has received in recent months. The Grayscale Ethereum Trust (ETHE) currently manages an ETH worth $ 5.7 billion. It is the second most popular investment vehicle offered by Grayscale after the Grayscale Bitcoin Trust. Grayscale has been topping up its crypto holdings since the beginning of the year as institutional investors crave ETH and other leading cryptocurrencies.