Santiment data shows that 1/3 of Ethereum current supply has moved from exchanges into personal wallets.
The circulating supply decreased from 24% down to 16% from September 26, 2020, till today.
Read: Bitfinex Just Spent $23.7 Million In Fees To Transfer 100,000 USDT In A Single Ethereum Transaction
? #Ethereum has rebounded back to $3,163. In the past year, 1/3 of the $ETH supply that was on exchanges, has now been moved off. This is a good sign for patient #hodlers.
? Sep. 26, 2020 exchange supply: 24.1%
? Sep. 26, 2021 exchange supply: 16.1%https://t.co/Nr151W3pGg pic.twitter.com/GByoBmNaRZ— Santiment (@santimentfeed) September 27, 2021
A period of accumulation accelerates when an asset’s value increases rapidly. Investors are forced to withdraw funds from the exchanges as they are not willing to sell their holdings. When the supply of Ethereum began to fall on exchanges from September 2020, ETH prices increased by 1000%. The majority of Ethereum owners are holding their coins at a profit of 68%.
If on-chain data shows a rapid rise in exchange flows, then the accumulation period is considered over. The price of the underlying assets usually drops dramatically after the accumulation period is over.
With the rise of alternative investment options, such as lending and liquidity provisions, Ethereum’s development was much faster than the 2017 bull run. Investors may choose to reinvest their coins instead of keeping them on the market or selling them.
The current locked value in the Defi sector is $85 billion, with ATH of $95 billion on September 6. According to the current trend, Ethereum holders would rather keep their assets in personal wallets and Defi smart contracts than on exchanges.
Read: Ethereum 2.0 Deposit Contract Now Holds Above 7.7 Million Ethereum Worth More Than $25 Billion
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.
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