Crypto analytics platform ViewBase has lately discovered that just about one-fourth of the circulating provide of Ether (ETH) tokens are held on cryptocurrency exchanges. Specifically, CoinTelegraph reported that 26,768,260 ETH are on exchanges, which equates to roughly 23.6% of all circulating ETH tokens. At press time, this equated to $10.3 billion.
Join your trade leaders on the Finance Magnates Virtual Summit 2020: Register and vote for the FMLS awards
Notably, almost all of the 26 million tokens are being stored on 10 centralized exchanges. Coinbase alone has custody of 8,.5 million ETH tokens, roughly 7.5% of the availability.
By comparability, the entire quantity of BTC caught on cryptocurrency exchanges equates to roughly 8.1 % of the circulating provide of Bitcoin.
Analysts say that ETH hodlers wish to promote whereas BTC hodlers are stashing their cash
This might suggest that BTC hodlers are a lot much less wanting to promote their cash that ETH hodlers. Earlier in October, famend cryptocurrency analyst, Willy Woo wrote on Twitter that when the quantity of cash stored on cryptocurrency exchanges drops, “It’s a sign that new buyers are coming in to scoop the coins off the markets and moving them into cold storage.”
When cash on spot exchanges drop, it is a signal that new patrons are coming in to scoop cash off the markets and shifting them into chilly storage HODL, we’re seeing new HODLers proper now. Very macro bullish. pic.twitter.com/XKsOsyYGIq
— Willy Woo (@woonomic) October 7, 2020
The FBS CopyTrade Team Presents a New ‘FBS CopyStar’ ContestGo to article >>
In different phrases, cash are being purchased and transferred into non-public digital wallets for long-term hodling. Therefore, Woo mentioned low numbers of cash on exchanges is “macro bullish.”
By distinction, a excessive quantity of cash on exchanges might point out that hodlers are keen to dump their cash. Therefore, ETH hodlers could possibly be seeking to money out.
However, Bitcoin appears to be rising in reputation as a long-term funding asset. Earlier this month, Finance Magnates reported that BTC’s migration off exchanges has reached its highest level in months.
Bitcoin Fear and Greed Index is 67 – Greed pic.twitter.com/ksuUNIZVt1
— Bitcoin Fear and Greed Index (@BitcoinFear) October 29, 2020
At the identical time, knowledge from Glassnode reveals that there was development within the quantity of new Bitcoin pockets addresses being created every day: 480,000 — roughly six occasions the quantity of new Ether wallets which are being created day by day.
Furthermore, Finance Magnates reported that Bitcoin’s Fear and Greed Index, which measures the probability of market members to purchase (greed) or promote (concern) their cash, has been decisively skewed towards greed for many of the month of October.