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Ethereum supply on exchanges has continued to go down recently and has now touched a value of 10.3%, effectively a new all-time low.

According to data from the on-chain analytics firm Santiment, the current ETH supply on exchanges is the lowest since the week the cryptocurrency was introduced almost eight years ago.

The supply on exchanges is an indicator that measures the percentage of the total Ethereum supply thats currently being stored in the wallets of all centralized exchanges.

When the value of this metric goes down, it means some coins are being taken out of these platforms right now. Such a trend, when prolonged, may prove to be bullish for the assets price as it can be a sign that accumulation is going on in the market.

On the other hand, the metrics value trending up implies investors are depositing their ETH to exchanges currently. As one of the main reasons why holders transfer to these platforms is for selling-related purposes, this kind of trend can have a bearish effect on the value of the asset.

Now, here is a chart that shows the trend in the Ethereum supply on exchanges over the last several years:

As displayed in the above graph, the Ethereum supply on exchanges had been on a constant downtrend since the start of the bull run of this cycle, until the middle of the bear market in 2022.

The indicator observed some growth during this period, suggesting that investors were depositing to these platforms then. This may have been a sign of capitulation, as holders who bought during the bull run tend to exit out of the asset when bear markets set in.

This uptrend that was building up, however, broke off around the time of the collapse of the cryptocurrency exchange FTX. The reason behind this was that, after seeing what went down with FTX, investors became more aware than ever of the risks of keeping their coins in central custody.

So, a large number of holders made withdrawals from such platforms to keep their Ethereum inside their personal wallets. Because of this movement, the supply on exchanges saw a sharp plunge.

Interestingly, as the rally has taken place this year, the metric still hasnt reversed its trend and has rather kept on going down. Normally, deposits may be expected during periods with bullish trends as some holders would want to realize their profits.

The fact that the indicator has only continued the downtrend suggests that there is enough demand for withdrawing the asset that any deposits being made are getting outweighed.

Following the latest downtrend in the indicator, the percentage of the Ethereum supply on exchanges has dropped to just 10.3%. Santiment believes that this shows high confidence from the HODLers of the asset.

At the time of writing, Ethereum is trading around $1,700, down 1% in the last week.

Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Santiment.net

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Ethereum Supply On Exchanges Plunges To New All-Time Lows - Bitcoinist

Ethereum (ETH), the worlds second-largest cryptocurrency by market capitalization, continues to undergo a supply reduction as the latest Shanghai upgrade progresses. Notably, the digital assets total supply had dropped by over 66,000 ETH since the start of 2023, making it deflationary.

Currently, there is just 10.31% of existing ETH on exchanges, which is the lowest level since July 2015, as per the latest data from on-chain analytics provider Santiment shared on March 28. Almost 90% of Ethereum is now off exchanges as regulators continue to struggle to classify ETH as a security or commodity.

Indeed, Ethereums percentage of supply has now hit its lowest level since its genesis, with the amount of ETH now being held in self-custody and away from exchanges at the highest level since the week the token was introduced nearly 8 years ago.

This essential all-time low ratio of ETH on exchanges (10.31%) indicates confidence from hodlers.

The rise in self-custody of Ethereum is due to a growing trend among investors to hold their tokens in personal wallets instead of leaving them on crypto exchanges. This shift in behavior has been fueled by increasing concerns about the security of exchanges such as FTX and the need for investors to have full control over their assets.

The trend is also being driven by the rise of decentralized finance (DeFi) protocols built on the Ethereum blockchain. DeFi protocols enable users to lend, borrow, and trade cryptocurrencies without the need for intermediaries such as banks. This has led to a surge in demand for Ethereum as investors seek to participate in these innovative new financial instruments.

Thus, many investors are starting to look at Ethereum as a potential long-term investment vehicle, much like Bitcoin. This is evident in the growing confidence of hodlers, who are holding onto their Ether for the long term, as opposed to trading it on cryptocurrency exchanges.

Besides the increase in self-custody, the low proportion of ETH on exchanges indicates a significant buying trend. The continued accumulation of Ethereum by hodlers results in a shrinking supply on exchanges, which in turn causes the price of the cryptocurrency to increase.

This pattern is likely to persist as long as investors continue to store their tokens in self-custody; at the same time, Ethereum will likely keep evolving and developing new use cases. As things stand, ETH is now trading at $1,728, down 1.71% in the last 24 hours, with a total market cap of $211 billion.

Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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90% of Ethereum now in self-custody as supply on exchanges hits lowest level since 2015 - Finbold - Finance in Bold

dYdX announced the launch of its V4 private testnet this Tuesday, taking a significant step that will see the decentralized derivatives exchange (DEX) leave Ethereum.

By the end of September, the platform will be fully running on Cosmos.

The network allows developer teams to spin up their own native blockchains using the Cosmos Software Development Kit (SDK) according to their own preferences. Though distinct, each independent Cosmos-based blockchain can interact with one another.

The private testnet for dYdX is set to launch this Tuesday and run for two to three weeks. After that, a public testnet will be launched by the end of July.

The platform cited the lack of scalability on Ethereum as the main reason for the move.

"We reached a point where Ethereum couldn't process the transactions fast enough," dYdXs marketing lead Nathan Cha told Decrypt at this years Paris Blockchain Week.

This is the second project to announce its migration from Ethereum to Cosmos. SushiSwap is also making the same move after the project acquired the Cosmos-based trading platform Vortex Protocol last month.

The teams explored various options, including Solana and layer-2 solutions. "We came to the conclusion that Cosmos was the better option because we can customize the blockchain to our needs, said Cha. Now we can handle transactions at a faster pace."

Launched in 2017 by Antonio Juliano, who previously worked at Coinbase and Uber as a software engineer, dYdX currently has roughly $341.5 million in total value locked (TVL), per DeFi Llama.

TVL is a metric used to measure how much money is sloshing around in a given DeFi protocol. Lido Finance, a liquid staking protocol, currently has the largest TVL at a whopping $10.4 billion.

Though decentralized exchanges like Uniswap, Curve, and dYdX are steadily growing, they still only account for a small share of transactions compared to their centralized counterparts. Trading volume over the past day, Uniswap has facilitated more than $642 million in orders. Binance has processed more than $4.28 billion in trades over the same period.

Contrary to expectations at the time, the collapse of FTX last November did not significantly change this proportion.

"After FTX, we saw a 20-30% increase in trading volume, but only for a short time," David Gogel, Vice President of the dYdX Foundation, told Decrypt. "The companies that benefited the most from the FTX case are other centralized exchanges. People don't really know about self-custody, and there's still a lot of work to do to educate them. It's a complicated journey."

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dYdX Reveals Launch Date for Move From Ethereum to Cosmos - Decrypt

Major coins traded in the red on Monday evening after the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder Changpeng Zhao for allegedly offering unregistered cryptocurrency derivatives products to U.S. clients in violation of federal law.

What Happened: Apex cryptocurrency Bitcoin BTC/USD plummeted to $26,525, its lowest point since March 17.

At the time of writing, the global crypto market capitalization stood at $1.13 trillion, a decrease of 2.84% over the last day.

U.S. stocks rose on Monday afternoon as investors welcomed the news that First Citizens BancShares would be acquiring most of the business of Silicon Valley Bank. The S&P 500 was up a modest 0.16%, and the Nasdaq, which is heavily focused on tech companies, was up 0.34%.

See More: Best Crypto Day Trading Strategies

News Highlights: According to data from Coinglass, over $39 million worth of long BTC positions were liquidated as a result of the CFTC lawsuit against Binance news.

CFTC proclaimed that several cryptocurrencies including Bitcoin, Ethereum, Litecoin, Tetherand Binance USD are commodities. This news came as a surprise to traders who had presumed these cryptos were securities, as suggested earlier by Securities and Exchange Commission (SEC) Chairman Gary Gensler.

MicroStrategy MSTR on Monday said it invested another 6,455 Bitcoin at an average price of $23,238 per coin over the last five weeks, bringing its total number of coins held to 91,579.

Analyst Notes: As we approach Bitcoin halving, which is due in May 2024, we can expect Bitcoin to touch $30,000 as a short-term price target. The price appreciation across crypto assets will encourage users to create fresh positions and accumulate more digital assets. The overall outlook is looking positive and current momentum may sustain if macroeconomic factors remain favourable in the coming weeks, said Dhruvil Shah, SVP of Technology at Liminal, a wallet infrastructure and custody platform.

Pseudonymous crypto analyst Rekt Capital said BTC is about to form its first "Bullish Engulfing Quarterly Candlesince Spring/Summer 2020. This could be an exceptionally special market event, as a Bullish Engulfing Candle signifies the potential start of a long-term uptrend.

The latest data from Santiment reveals that Ethereum is now being held in self-custody away from exchanges at the highest level since the token was introduced nearly 8 years ago. Over 10.31% of ETH is now held on exchanges, indicating serious confidence from long-term holders - an essential all-time low.

Read Next: Web3 Token Surpasses Bitcoin, Ethereum In Weekly Gains With 33% Surge On Microsoft Tie-Up

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Bitcoin, Ethereum, Dogecoin Slide After CFTC Lawsuit Against Binance: Analyst Expects Apex Crypto To Touch $30K If ... - Benzinga

The leading cryptocurrency exchange by trading volume, Binance, and its CEO Changpeng Zhao were sued Monday by the Commodity Futures Trading Commission (CFTC).

The U.S. regulator alleged that Zhao and his company violated trading and derivatives rules, according to a lawsuit filed by the CFTC in a Chicago federal court.

The two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, fell on the news, according to CoinGecko. Over the past hour, Bitcoin had fallen 3.3% to $26,800, and Ethereum had stumbled 2.9% to under $1,700.

Zhao responded to the lawsuit's announcement by tweeting 4, alluding to a tweet he made in January that connects the number to Ignore FUD, fake news, attacks, etc.

The lawsuit alleges that Binance has operated a facility for trading digital asset derivatives in the U.S. since at least July 2019, allowing residents to trade futures, swaps, and options on cryptocurrencies including Bitcoin, Ethereum, and Litecoin.

Binance also made attempts to grow its footprint in the U.S. despite claims that the exchange would prevent U.S. residents from accessing Binances platform, the lawsuit claims.

Binance has taken a calculated, phased approach to increase its United States presence despite publicly stating its purported intent to block or restrict customers located in the United States from accessing its platform, it states.

Though Binance, Zhao, and other employees at the exchange knew they were required to register Binance with the CFTC after soliciting customers in the U.S., the lawsuit claims they have all chosen to ignore those requirements and undermined Binances ineffective compliance program.

One of the ways that Binance undermined its compliance program was by having its officers, employees, and agents assist users in using a virtual private network (VPN) to obscure their location. CNBC reported last week that the exchange played a role in helping people bypass restrictions in China to access the exchange.

The lawsuit went on to claim that Binances reluctance to disclose the location of its executive offices is reflective of the exchanges attempts to avoid regulation. It states that Binance failed to comply with laws designed to detect and prevent money laundering and terrorist financing.

Binance has never been registered with the CFTC in any capacity and has disregarded federal laws essential to the integrity and vitality of the U.S. financial markets, the lawsuit states. Unless restrained and enjoined by this Court, Defendants are likely to continue to engage in the acts and practices alleged in this Complaint.

The lawsuit includes messages sent via the encrypted messaging app Signal that were collected from Zhaos telephone. It added that Zhao instructed Binance representatives to use Signal to communicate with customers based in the U.S.

The defendants own emails and chats reflect that Binances compliance efforts have been a sham and Binance deliberately choseover and overto place profits over following the law, acting director of the division of enforcement at the CFTC Gretchen Lowe said in a press release. The CFTC and its Enforcement Division will pursue those digital asset platforms and individuals who flout and actively attempt to circumvent CFTC regulatory requirements.

As part of its lawsuit, the CFTC seeks to compel Binance to repay allegedly ill-gotten gains that stem from the misconduct it is accused of. It also wants Binance to pay civil penalties and accept bans on trading as well as its ability to register within the U.S.

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Bitcoin, Ethereum Fall as CFTC Sues Binance and CEO Changpeng Zhao - Decrypt