Ethereum (ETH), Exchange Supply Plummets 73%...BitMine (BMNR) Sweeps It Up

▲ Ethereum (ETH)

Ethereum (ETH) holdings on exchanges have plummeted by 73% compared to their 2020 peak, rapidly reducing the amount available for immediate sale in the market.

According to Cryptopotato on September 15 (local time), Santiment reported that the amount of Ethereum remaining on cryptocurrency exchanges has decreased to 6.06 million ETH. This represents a 73% reduction compared to the 22.9 million ETH recorded in June 2020. As the supply close to exchange order books diminishes, the amount investors can immediately put on the market has also significantly decreased.

Ethereum that has moved off exchanges is going into staking, Ethereum spot ETFs, corporate treasury strategies, and long-term storage. Validators are also continuously depositing Ethereum to secure the network. Santiment analyzed that if the liquid supply decreases, even a relatively small buying pressure can have a greater impact on the price, even if demand doesn't significantly increase.

Corporate acquisition of Ethereum also supports the decrease in exchange supply. BitMine Immersion Technologies added 27,180 ETH last week, securing a total of 5,956,378 ETH. This accounts for 4.9% of the total Ethereum supply of 122 million ETH. BitMine aims to secure 5% of the total supply and has currently reached 98% of its goal.

Of the Ethereum held by BitMine, 5,067,309 ETH have been staked through its own validator network. This is approximately 85% of its total holdings. Tom Lee estimated that based on the current staking volume, annual revenue would reach $334 million. If all Ethereum were staked, the estimated revenue would increase to $392 million. BitMine's total assets, including cryptocurrency and cash, amount to $15.8 billion.

Institutional funds have also flowed into Ethereum spot ETFs. Net inflows last week were approximately $197 million, with $216.4 million entering on the last trading day alone, recovering previous outflows. On Monday, an additional $121 million flowed in, bringing the monthly cumulative total close to $450 million. With decreasing exchange supply and simultaneous corporate and ETF demand, Ethereum's distribution structure is rapidly changing.

[Article Key Summary]

-Ethereum holdings on exchanges decreased to 6.06 million ETH, a 73% reduction from the peak of 22.9 million ETH in June 2020.

-BitMine holds 5,956,378 ETH, securing 4.9% of the total supply, and has staked approximately 85% of it.

-Ethereum spot ETFs saw net inflows of approximately $197 million last week, with monthly cumulative inflows approaching $450 million.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*