{"id":42741,"date":"2025-05-20T14:30:38","date_gmt":"2025-05-20T11:30:38","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=42741"},"modified":"2025-05-30T16:42:00","modified_gmt":"2025-05-30T13:42:00","slug":"ethereum-and-bitcoin-supply-hits-historic-lows","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/ethereum-and-bitcoin-supply-hits-historic-lows\/","title":{"rendered":"Ethereum and Bitcoin Supply Hits Historic Lows\u00a0"},"content":{"rendered":"

A significant shift is occurring in the cryptocurrency market. According to Santiment\u2019s<\/strong> data, Ethereum\u2019s supply<\/strong> on exchanges has fallen below 4.9% for the first time in history. Bitcoin\u2019s<\/a> supply<\/strong> on exchanges has also dropped to 7.1%<\/strong>, a level not seen since November 2018. This indicates that investors are withdrawing their assets from exchanges, favoring long-term holding (HODL)<\/strong> strategies. A declining supply on exchanges could reduce selling pressure and support upward price movements.<\/span>\u00a0<\/span><\/p>\n

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Table of Contents<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n

  • Why Is Exchange Supply Decreasing?\u00a0<\/a><\/li>
  • What Does This Mean for the Market?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n

    <\/span>Why Is Exchange Supply Decreasing?<\/span>\u00a0<\/span><\/span><\/h2>\n

    Investors are moving Ethereum and Bitcoin<\/strong> off centralized exchanges. Santiment reports<\/strong> that over the past five years, 1.7 million BTC<\/strong> and 15.3 million ETH<\/strong> have been transferred from exchanges. This suggests a preference for storing assets in cold wallets. Security concerns, long-term investment expectations, and participation in decentralized finance (DeFi)<\/strong> projects are driving this trend. Lower exchange supply reduces liquidity and supports potential price increases. Additionally, Santiment highlights a 20% increase in Ethereum\u2019s Layer-2<\/strong> solution activity as a key factor strengthening this movement. Whales<\/strong> are also playing an active role, with Ethereum whales accumulating an additional 450,000 ETH<\/strong>, bringing their total holdings to 40.75 million ETH.<\/span>\u00a0<\/span><\/p>\n

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    \ud83d\udcc9 Ethereum has under 4.9% of its supply on exchanges for the first time in its 10+ year history. And Bitcoin's supply on exchanges is down to just 7.1% for the first time since November, 2018.<\/p>\n

    \ud83d\uddd3\ufe0f Over the past 5 years, there is:<\/p>\n

    \ud83d\udc49 1.7M less Bitcoin on exchanges
    \ud83d\udc49 15.3M less\u2026     pic.twitter.com\/kKn9s1m2mC<\/a><\/p>\n

    — Santiment (@santimentfeed) May 19, 2025<\/a><\/p><\/blockquote>\n