How Ethereum low supply on exchanges could drive up ETH price

How Ethereum low supply on exchanges could drive up ETH price
фото показано с : newsbtc.com

2021-3-22 00:11

Research firm Santiment has determined that Ethereum’s supply radius on exchange platforms is at a 28-month low. With 20.1% of ETH in its reserves, the last time the metric was at similar levels was in November 2018.

Source: Santiment

Above is a look at the relationship between the increase in Ethereum supply on the exchanges and fluctuations in its price. ETH’s rally in recent months corresponds to a sustained decline in this metric.

Ethereum is trading at $1,808 with bearish performance in the 24-hour chart. However, in the last hour ETH is showing an uptrend with 0.3% gains, after a week of negative performance. If the cryptocurrency manages to stay above the current level it could gain more momentum and go after resistance at $1,850.

Ethereum breaking above $1,800. Source: ETHUSD Tradingview Where is Ethereum’s demand coming from?

Two sectors are currently taking a big part of ETH’s supply. Data from DeFi Pulse register 9,4 million ETH locked in DeFi protocols. After registering a drop at the end of February, ETH inflows into decentralized finance protocols have absorbed 1.5 million ETH since March 8.

This trend is continuing and shows no signs of weakening, as more and more users join the sector for profits or to participate in the Non-Fungible Token (NFT) craze.

Source: DeFi Pulse

MakerDAO, Compound y Sushiswap hold the biggest amount of ETH with 3 million and 1.4 million each, respectively. Uniswap, Aave, Alpha Homora, and Balancer follow, but only the decentralized exchange (DEX) holds over 1 million ETH.

On the other hand, Ethereum 2.0 deposit contract has also absorbed a lot of ETH supply. At the moment, it holds 3,559,362 ETH with an estimated value of $6 billion. According to Arcane Research, more institutional demand has come for ETH since late 2020:

the steady increase in ETH loans outstanding. After ending Q1 at 5.5%, the share of ETH loans outstanding grew 177% over the next three quarters, ending the year at 15.5%. Of course, some of this growth is attributable to ETH’s price inflation.

Sustained demand for ETH could positively impact its price and allow the rally to continue through 2021. According to ETH Gas Station, transactions fees on the blockchain are again at record levels with 161 Gwei for the cheapest.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Ethereum (ETH) на Currencies.ru

$ 3316.68 (-0.08%)
Объем 24H $24.83b
Изменеия 24h: -1.19 %, 7d: -14.91 %
Cегодня L: $3274.83 - H: $3393.89
Капитализация $399.511b Rank 2
Цена в час новости $ 1778.52 (86.49%)

eth ethereum low supply 28-month reserves levels

Источник: newsbtc.com

eth ethereum → Результатов: 126


Traders Rushing Back to Ethereum – Can ETH Recover This September?

It looks like the crypto market is entering a slow recovery mode, with most of the top 10 projects seeing nice jumps over the past week. However, Ethereum failed to follow the market sentiment, and remained around $2,300 level throughout the week – industry insiders are blaming a large number of ETH whales who liquidated […] The post Traders Rushing Back to Ethereum – Can ETH Recover This September? appeared first on CaptainAltcoin.

2024-9-18 17:30


Ethereum Price Prediction: Analyst Anticipates ETH Dropping to $2200, Sharks Join The Mpeppe Wave After 150% Rally

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently been struggling to maintain its momentum in the face of bearish trends. Analysts have been observing Ethereum’s performance closely, and many are predicting a further decline in price, with some forecasting that ETH could drop as low as $2,200.

2024-9-7 20:27


дальше еще 77 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin And Ether ETFs Set Record $7.6 Billion Inflows Amid Trump’s Crypto Push

Analysts said that two of the biggest cryptocurrencies in the world are riding on the waves of positive sentiments as the exchange-traded funds of Bitcoin and Ethereum reached record highs. The pro-cryptocurrency stance of US President-elect Donald Trump continues to fuel the positive outlook, propelling BTC and ETH to attain unprecedented levels. Related Reading: Operation […]

Ethereum Bullish Signal: Adoption Hits Four-Month High Rate

On-chain data shows the Ethereum adoption rate has hit a four-month high, which could be bullish for the cryptocurrency’s price. Ethereum Network Growth Has Shot Up Recently According to data from the on-chain analytics firm Santiment, the ETH blockchain has recently created many wallets.

Ethereum Rockets Forward With 3.3% Network Growth While Bitcoin Goes Stale

On-chain data shows Ethereum has notably outpaced Bitcoin in terms of adoption during the last three months, a sign that could be positive for ETH. Ethereum Has Seen Its Holder Count Go Up By 3.3% In Last Three Months According to data from the on-chain analytics firm Santiment, Ethereum has continued to separate itself from […]