Ethereum Holdings on Binance Reach Multi-Year Low

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What to Know:
  • Ethereum holdings on Binance hit nine-year low, signaling major shifts.
  • Whale and institutional accumulation are key factors.
  • Long-term holdings increase amid price stabilization.

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.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
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Thane Morrison is a diligent crypto news author and keen blockchain and digital finance enthusiast. He writes insightfully correct engaging content on Bitcoin, altcoins, DeFi, and NFTs to help readers understand how this relentless, changing world works. Simplification and empowerment are what he really stands for and enables readers to keep their heads in the game when making vital decisions in such a demanding space.

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