$ETH Supply Plunges to Historic Low as Staking and DeFi Dominate
The Ethereum supply on exchanges has hit an all-time low at 3.49% of the total supply, according to Santiment.
This significant drop in exchange reserves comes after a substantial withdrawal of $ETH since June 1st, with around 1.16% of the supply removed from exchanges.
The decrease in Ethereum held on centralized exchanges is largely due to staking and decentralized finance (DeFi) activities, which are utilizing a considerable portion of $ETH in blockchain applications rather than keeping it on exchanges.
While this decline in exchange reserves may indicate a shrinking supply of $ETH available for sale, it's essential to monitor the trend alongside other factors such as staking rates and DeFi usage to accurately gauge the impact on the price.