Cryptocurrency analytics provider Santiment revealed that nearly 90% of Ethereum’s supply is now stored in self-managed addresses. The last time the number was this high was in 2015, shortly after the protocol’s native token came out.
😮📊 #Ethereum Since the week the token was launched nearly 8 years ago, it is now in self-custody, away from exchanges.This fundamental historically low ratio $ ether Confidence in the exchange (10.31%) comes from #hodlers. https://t.co/VPwlCjzbAN pic.twitter.com/VB2r57xhQl
– Santiment (@santimentfeed) March 27, 2023
The new data comes as investors appear to be losing faith in centralized exchanges. Withdrawals from Binance have surged over the past two days amid a conflict between the platform and the CFTC.
Santiment data shows that only 10.31% of ethereum’s supply is currently held on exchanges, the lowest percentage since the token’s inception.
It is worth noting that since last September, users have begun to transfer their holdings to self-custody addresses on a large scale. This process intensified during the FTX crisis in November, eroding trust in centralized platforms.
Some investors appeared to be eager to move assets from Binance to cold wallets after the U.S. CFTC threatened to sue the exchange for alleged trading violations.
Nansen showed that the company had a net outflow of $400 million that day. Interestingly, data released by Thanefield Capital shows that investors withdrew approximately $850 million from the platform in the 12 hours leading up to the CFTC charges.
- Lido issued an NFT representing ETH and demanded cash withdrawal after Ethereum Shanghai
- Ethereum Shanghai Upgrade Brings Exciting Changes for ETH Holders
annie
According to Cryptopotato
