Ethereum Holdings on Binance Reach Multi-Year Low

Ethereum’s exchange supply on Binance has plunged to its lowest since May last year, driven by significant whale and institutional accumulation, according to updates from Binance and CryptoQuant.

This shift indicates a major transition toward long-term holding, potentially impacting ETH’s market dynamics and investor strategies as on-chain metrics reveal increasing accumulation and illiquidity.

Ethereum’s exchange supply on Binance has plummeted to its lowest level since May 2022, sparked by significant whale and institutional accumulation and recorded on October 2023.

This decline represents a significant shift towards holding, influencing Ethereum’s market dynamics and liquidity conditions.

Binance ETH Holdings Drop to Lowest Since 2022

Ethereum’s declining exchange supply on Binance is linked to increased whale and institutional activities, as evident from on-chain data and Binance’s official reports. Institutions such as BitMine and Bit Digital play an essential role, collectively holding over 5% of ETH’s supply. The decline underscores a major shift in investor behavior.

Institutional Demand Tightens Ethereum Liquidity

The drop in Binance’s Ethereum balances affects overall market liquidity and price stability, with ETH stabilizing around $3,500–$4,000. Increased demand from ETFs has significant financial implications, with nearly 15% of Ethereum’s supply now held by institutions, tightening available supply. According to Crypto Gucci.eth, “ETH’s supply is disappearing faster than ever. Over 40% of all $ETH is currently locked out of circulation and continues to climb rapidly. Ethereum has never experienced a market cycle with all three supply vacuums active at once…”

Historical Patterns Point to Potential ETH Rally

Comparisons to 2017 and 2020 highlight similar accumulation patterns triggering rallies, setting a precedent for potential future market growth. Experts, including Crypto Gucci.eth, note the unprecedented speed of supply withdrawal, suggesting possible further price appreciation and reduced risk.

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