New data shows that the number of Ethereum entering the exchange is decreasing in the past few weeks. Recent chart analysis shows that the current balance of Ethereum in the exchange has reached a new low point, indicating that the overall liquidity of these platforms has declined
New data shows that the number of Ethereum entering the exchange is decreasing in the past few weeks. Recent chart analysis shows that the current balance of Ethereum in the exchange has reached a new low point, indicating that the overall liquidity of these platforms has declined.
Ethereum fell on the exchange
GlassnodeAlerts recently released a chart showing the continuous decline of Ethereum in the exchange. It also indicates that every day in the past has set a new historical low.
The latest data from Glassnode shows that the current exchange ETH balance is about 17.2 million, reaching the lowest point in nearly five years.
By comparison, the exchange balance in January exceeded 19 million; In early May, it exceeded 18 million.
This downward trend means a decrease in available liquidity within the exchange. However, it should be noted that the decrease in ETH on exchanges does not necessarily mean a decrease in ETH holders.
Ethereum holders remain stable
Although it seems that Ethereum leaves the exchange faster than it deposits, the dynamics around the total number of ETH holders tell a different story.
The Santiment chart shows a steady increase in the number of ETH holders. Currently, approximately 100 million people hold different numbers of ETHs, and this growth is gradual. According to reports, as of the end of this month, the number of holders is approximately 98.4 million.
The decrease in exchange balances and the simultaneous increase in the number of holders can be attributed to two main factors: self custody and pledge.
Firstly, more and more people are choosing to self manage and store their ETHs in their personal wallets, rather than leaving them on centralized exchanges. It provides users with greater control and security over their assets.
Secondly, quality has become increasingly popular. The pledge involves locking in a certain number of Ethereum to prove the consensus mechanism by participating in the network's rights and interests.
In return for protecting network security, stakeholders receive rewards in the form of additional ETHs. It incentivizes users to hold their ETH in pledge contracts rather than on exchanges. As of the writing of this article, the total number of ETH deposits used for collateral has exceeded 780000 and is still growing.
ETHTVL and Price
According to DefiLlama's data, Ethereum's dominant position in total value locking (TVL) remains stable. As of the time of writing, TVL is approximately $27.35 billion, accounting for more than half of the total TVL.
This indicates that liquidity continues to flow into the Ethereum ecosystem, emphasizing the continuing relevance and importance of ETH.
By comparison, browsing the CoinMarketCad data reveals that ETH has ranked third in trading volume over the past 21 hours. The total trading volume of the entire Cryptocurrency market exceeded $19 billion, of which ETH contributed more than $3 billion.
In addition, ETH maintains its position as the second largest Cryptocurrency by market value, second only to Bitcoin.
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