Ethereum Is Disappearing From Exchanges Fast: Here’s Where All the ETH Is Going

ETH has lost some short-term momentum after its recent rally. But the network itself has not shown a major decline in activity. Ethereum’s tradable supply on crypto exchanges has fallen to a record low. Only 3.49% of ETH is now held on tracked platforms In fact, fresh data from Santiment reveals that another 1.16% of ETH supply has moved off these trading venues since June 1. Shrinking Supply Exchange balances had already dropped to their lowest levels since Ethereum’s early years this summer. The decline means fewer ETH tokens are immediately available for trading or selling. However, lower exchange supply does not guarantee a rise in its price. Santiment explained that a major reason behind this is the growing use of ETH in staking and DeFi. Around 35% of Ethereum is estimated to be staked. The network also has about $53 billion locked in DeFi, which gives holders more ways to earn yield or keep their coins active on-chain. To top that, long-term holders are also keeping more ETH away from exchange order books. Large treasury holders are adding to this trend. BitMine, for example, reported staking more than 5 million ETH earlier this month. If demand for the crypto asset increase...