Overall demand for ETH continues to increase with new blockchain data suggesting that the total supply held on exchanges has declined by about a third in just the past year.
This shows that there are more and more users interested in buying Ethereum and less supply for trading on exchanges. This is because the data shows that there are currently only 16% of all existing ETH available on trading platforms.
“The Ethereum blockchain is arguably the most used network in the cryptocurrency space. After all, it’s home to several projects from two of the most important trends in the past year: non-fungible tokens and decentralized finance,” said Jordan Lyanchev.
Commenting on the matter, he highlighted these numbers are proof of the recognition of the protocol’s potential by investors. According to Lyanchev, the market has started to see the qualities of Ethereum for a while and they are allocating substantial funds to the cryptoactive.
“Some of the most notable names, including those outside the community, who have openly admitted to owning the second-largest cryptocurrency include Mark Cuban and Robert Kiyosaki,” he said.
As of September 26, 2020, 24.1% of ETH’s total offering was on trading platforms. A year later, the percentage dropped by about a third to 16.1%.
Therefore, the analysis company concluded that “this is a good sign for hodler patients”.
In other words, the decrease in the offer of ETH held on the exchanges means that investors are in no hurry to sell their cryptocurrencies. Consequently, this can be considered a bullish signal.
As he pointed out, on September 26 of last year, ETH was trading around $350. Then the digital currency entered a bull rush and more than doubled in value by the end of 2020.
2021 has already started on a high. The biggest altcoin in the market doubled in price, broke the 2018 ATH and reached unprecedented levels. It all happened in mid-May, when Ether hit the current record of $4,400.
“Despite the subsequent setback and volatility, ETH is still around $3,100 today. This means that even when investors were pulling ETH off exchanges, the asset’s price soared by almost 800%.”