Ethereum investors have started depositing Ethers they hold on exchanges to different addresses. It is believed that the shrinking of Ethereum reserves on exchanges could drive the price forward.
According to CryptoQuant data, the amount of ETH held on the exchanges decreased by 10 percent in a period of 24 hours. Cryptocurrency analysts began to talk about a liquidity crisis when a similar picture occurred for Bitcoin.
Nugget News founder Alex Saunders thinks this shift in Ethereum reserves could have a positive impact on the price.
remember what happened when the supply of bitcoin on the exchanges was unable to meet BTC demand. The BTC price quadrupled in 90 days.
he shared his views on Twitter.
Exchanges will run of $ETH in 10 days at current rate. Reserves dropped 10% in 24 hours. Incredible. We all know what happened when demand outstripped supply of $BTC. It quadrupled in 90 days. Can the world computer top that? ??️? #ETH2 #DeFi #NFTs #Gaming #DAO #Scaling pic.twitter.com/QJl3Hucqno
— Alex Saunders ???? (@AlexSaundersAU) January 14, 2021
Based on a market value of $140 billion, ETH has a circulation supply of 114 million, and more than 2.4 million of the circulating supply are held in the deposit contracts filed for Eth 2.0. There are chances that ETH bull rally is coming soon.
Read: SEC Investigator Behind $ 1.3 Billion XRP Lawsuit Resigns
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
