ETH Deposits in Exchanges Fall As Eth2 Contract Grows

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ETH’s ratio of coin supply on exchanges has hit a two-year low. This could be a very positive thing for investors that are thinking in the long-term. This is according to data provided by Santiment, a behaviour analysis platform. At the moment, the total Ethereum being held on exchanges is 13.35% of its total supply. The last time, this value was reached was on November 23, 2018, almost two years ago. Meanwhile, the Ethereum staked in the Eth2 deposit contract continues growing. 

ETH Deposits in Exchanges Fall

The amount of Ethereum deposited in exchanges has fallen to the lowest point in two years. This seems to be something very positive for long-term traders and holders. That means that the offer of Ethereum in trading platforms is now lower and demand seems to be growing. 

This situation could push Ethereum to higher prices in the near future. The cryptocurrency market has been growing in recent weeks and Ethereum was not the exception. Ethereum, the second-largest cryptocurrency, has now a price per coin of $459. Meanwhile, its market valuation surpassed $52 billion. 

Santiment ETH Deposited on Exchanges

According to Santiment, large whale selloff probabilities will remain limited in the near future. At the moment, the total ETH supply is 113.43 million. That means that there is only 15.14 million ETH available right now on exchanges. 

It is worth taking into consideration that the Eth2 deposit contract is also attracting investors. 82,075 ETH has been already staked in this deposit contract. However, users will have to deposit yet 442,213 more Ethereum in order for Eth2 to be launched. We have currently 15.7% of the target reached to launch Eth2. 

Although ETH deposits to Eth2 have been growing, they are not having a large impact on the total Ethereum’s supply. However, this could have an increased demand for the virtual currency considering 32 ETH per stake is needed. 

It is also worth taking into consideration that several millions of ETH are currently locked in Decentralized Finance (DeFi). The total Ethereum locked in DeFi is currently close to 9 million Ethereum. That means that around 8% of Ethereum’s total supply is now locked in different DeFi solutions. 

Many users are also worried these ETH locked in DeFi could be released to the market. If that happens, it may certainly increase the selling pressure of Ethereum in different virtual currency exchanges. 

Via: 2Usethebitcoin.com

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