Shortly after reaching a new all-time high, Ethereum has now slightly decreased to below the $4,000 level, along with numerous other altcoins and Bitcoin itself. Many BTC investors had continuously been converting their respective crypto into ETH as of late, as news of the world’s 2nd largest cryptocurrency skyrocketing in value convinced many that now was the time to jump ship.
As per reports and analytics provided by Glassnode, the total sum of ETH on various exchanges has now decreased to the lowest levels that it has ever been in the span of the last two years. Many are hoping that this is just another correction period, especially after numerous investors had only recently gotten into Ether.
Low ETH amount on centralized exchanges
To build upon what had been aforementioned, an estimated 13.3 million ETH is being held via various centralized exchanges at this very moment. This amount is indicative of an all-time low since all the way back in June of 2019. Moreover, the centralized platforms are now in possession of ETH that is worth a total of approximately $52.4 billion, which roughly translates to 11.5% of the overall supply.
To provide some further context, the overall amount of ETH being held on the centralized exchanges has now decreased by 20% within the past nine months following the ATH being set at 19 million Ether during September of last year. Furthermore, a low ETH balance on various exchanges is normally indicative of a bullish attitude as far as the market may be concerned. This is because it results in a reduction in the supply which itself is relative to the demand, which may rise or fall on the different trading platforms. So, the decreasing balances on the exchanges seem to suggest that the long-term investors are indeed transferring their respective assets and funds into storage or locking them up in an attempt to earn yields via DeFi protocols as well as staking.
ETH rising and BTC falling
Additionally, it is clear now that many investors feel as if the time has finally come to leave Bitcoin behind in favor of Ethereum. This is because while ETH continues to rise despite some fluctuations here and there, BTC, on the other hand, is still struggling and seems unable to reach the $60,000 mark once more.
Glassnode further added to this argument by claiming that if we were to observe the spending attitude and behavior when it does come to old BTC that was not used in transaction outputs for the duration of 6 months and then three years, then we would find conclusive evidence that various long-term consumers and investors may very well have been joining Ether instead and leaving BTC behind.