Ethereum Exchange Supply Hits 5-Year Low

Ethereum's Exchange Supply Decline

Ethereum (ETH) has seen its exchange supply drop to its lowest level in nearly five years. This significant reduction suggests a diminished likelihood of a future selloff. The trend towards self-custody has accelerated, particularly after the collapse of FTX, with a notable portion of ETH's supply being moved off exchanges.

Self-Custody Movement

Data reveals that ETH's supply on exchanges has fallen below 11% for the first time since June 2018. Since March 2020, approximately 15.99% more of ETH's total supply has transitioned to self-custody. This shift highlights a growing preference among investors to secure their holdings independently, reducing the risk of exchange-related selloffs.

Current Price and Market Performance

As of the latest data, ETH's price experienced a slight decline of 0.01% over the past 24 hours, contributing to a weekly performance of -1.89%. The altcoin is currently priced at $1,568.67. Despite the price dip, ETH has shown strength against Bitcoin (BTC), gaining 0.06%. The market cap of ETH has risen to approximately $192 billion.

Trading Volume Insights

ETH's trading volume has seen a significant decrease, dropping 30.92% in the last 24 hours. The current total daily trading volume stands at $6.63 billion. The cryptocurrency is trading close to its 24-hour high of $1,575.87, with a daily low of $1,552.45.

This trend of declining exchange supply and increased self-custody may influence Ethereum's future price dynamics and market stability. Investors should remain informed and exercise due diligence in their investment strategies.