Ethereum Supply on Exchanges Decreasing

According to the new chart shared by Santiment, since the Merge update completed in September, the supply of Ethereum on exchanges has decreased continuously. Announcing an important on-chain metric for Ethereum (ETH) in a blog post, analysts interpreted the exit of ETH from exchanges as good news for the cryptocurrency. The “Supply on Exchanges” metric is often used to measure the amount of cryptocurrencies stored on all exchanges.

According to the chart, the total supply of ETH on exchanges was recorded as 19.12 million on September 14, 2022, when the Merge update was active. The on-chain metric reveals that this figure has decreased to 13.16 million today. According to the data, with this decrease in the last 5 months, 37% of the ETH tokens on the exchanges were withdrawn to personal wallets.

Santiment analysts emphasized that the transition of the Ethereum network to the proof-of-stake system played a major role in this decline. However, the biggest decline in the 5-month period occurred in November, when the FTX exchange went bankrupt. This is a clear testament to the loss of investor confidence in centralized exchanges.