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Ethereum, the world’s second-largest cryptocurrency by market capitalization, has seen a significant shift in its dynamics. Ethereum’s supply on exchanges is at an all-time low of 9.9%, a trend indicative of the increasing interest and trust in self-custody within the crypto community.That’s according to data from popular cryptocurrency analytics firm Santiment. The shift away from exchanges towards self-custody, where individuals hold their own private keys rather than entrusting them to an exchange, has substantial implications, as it signifies that more investors are choosing to hold their ETH long-term, a move that can potentially tighten the market and exert upward pressure on the price.Put simply, less supply on exchanges means that there are less tokens readily available to be bought, meaning that higher demand could have a heavier influence on price.

While exchanges offer convenience, they also represent a single point of failure, exposing users to the risk of hacking and system failures. By taking control of their own private keys, crypto enthusiasts are demonstrating a heightened level of sophistication and a greater commitment to the principles of decentralization that underpin the crypto movement.Adding to Ethereum’s positive momentum, the cryptocurrency’s average transaction fees have recently returned to more affordable levels following a 2023 high of $14 per transaction in early May.Lower fees increase the utility of Ethereum’s network by making it more cost-effective for users to execute transactions and interact with decentralized applications, thereby fostering greater network usage and, in turn, enhancing Ethereum’s value proposition​​.


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