More and more Ethereum investors are withdrawing their ETH holdings from major crypto exchanges such as Binance and Coinbase. The result: Ethereum holdings held on these platforms have reached levels last seen in 2016. This phenomenon occurs at a time when the Ethereum price is recording noticeable increases.
Despite these price increases, investors are noticeably cautious when it comes to realizing profits. This reluctance strongly suggests that many of them are betting on the upward trend continuing. It is a sign that Ethereum is no longer just a short-term speculation object in the eyes of many investors, but is increasingly seen as a long-term investment.
Record high of ETH in smart contracts
For a holistic understanding of the Ethereum supply, it is crucial to look beyond just the Ether available on centralized crypto exchanges. The amount of ETH tied up in smart contracts is also of particular importance. This consists of the Ether used in staking processes and in various decentralized Ethereum applications.
A new all-time high was reached in November, with over 33 percent of all ETH now tied to smart contracts. This further reduces the amount of ETH in circulation. Combined with the already declining availability of ETH on exchanges, a real supply shock is emerging. If this meets increased demand, for example through ETF purchases, an increase in the Ether price would be possible.
You can read about the situation with ETH in general and which indicators are important now in the new BTC-ECHO Ethereum Report.
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