According to the latest data, bitcoin, Ethereum, stablecoin Major crypto-assets, such as crypto assets, are experiencing significant drops in their stock market entries. An exchange entry for an asset is defined as the amount of coins deposited in exchange wallets.
Data from on-chain analysis firm Glassnode includes Bitcoin, Ethereum, BUSD, USDT, USDC And DAI like cryptocurrency units reveal this trend. According to the data, stock market entries for major assets are eerily quiet at $1.84 billion. It is noteworthy that this figure is approximately $10.36 billion less than the highest entry in the sales wave in May 2021.
📉 $USDC Exchange Outflow Volume (7d MA) just reached a 1-month low of 13,327,892,896 USDC
Previous 1-month low of 13,415,262.093 USDC was observed on 31 May 2023
View metric: pic.twitter.com/YAU0gwJiHw
— glassnode alerts (@glassnodealerts) June 5, 2023
This decline represents a decline of about 85 percent compared to the peak about 2 years ago. Analysts think this is largely due to recent capitulation and exit liquidity events. Specifically, large entries represent a bearish trend, while decreasing values indicate the opposite.
At the same time, another dataset from exchange on-chain streams reveals significantly weaker demand since April. Data from Glassnode shows major shifts in stablecoins, with the supply of USDT reaching all-time highs, while USDC and BUSD have fallen to their lowest levels in recent years. In particular, given that stablecoins do not earn interest and regulatory pressure is mounting in the US, it appears that US capital is now less active in digital assets.
Significant drop in Ethereum supply
The data also shows a significant drop in the total supply of Ethereum held on exchanges. According to the latest data, the percentage of Ethereum held on exchanges has reached 14 percent, marking the lowest level in seven years since July 2016.
Analysts, especially when it comes to Ethereum Merge He argues that thereafter, there was a significant decrease in the balance held on the exchange, and that the speed over time also increased.
In 2022, in the case of Merge, the legacy Ethereum blockchain merged with Beacon Chain, effectively switching Ethereum from a Proof-of-Work (PoW) to a PoS network. It is believed that the transition to the PoS mechanism is less energy-intensive and provides a platform for the implementation of new scaling solutions.
Additionally, according to the data, about 16.04 percent of the total Ethereum supply is currently staked. Reportedly, the current staked amount of ETH is around 19.29 million. Only 3 million ETH has not been staked since the Shanghai upgrade. This shows that most of the ETH remains locked in the network.
There is a similar trend for Bitcoin, given the declining balance on exchanges and the increasing desire to save among investors. Especially whales and shrimps have been accumulating Bitcoin heavily lately.
In particular, a drop in asset supply on stock markets is often seen as a bullish sign for a variety of reasons. One of the most important reasons behind this is that there are fewer coins that can be sold on exchanges. This limited supply can create a supply-demand imbalance, potentially driving up the price of assets.
It may interest you: ETH holders are increasing while Ethereum balances on exchanges are falling!