The supply of Ethereum reaches an all-time low of 117.65 million, down from 120.26 million, a -2.18% change. The price of ETH on cryptocurrency exchanges reflects the situation, as, in the past week, the value has increased from $1,945 to $1,744. Currently valued at $1,805, the prices are on an upward slope, and speculation arises about a potential increase.

Ethereum (ETH) Supply at a Record-breaking Low; Token Prices to Rise?

Key Highlights:

  • Ethereum (ETH) supply in the crypto exchange drops to 10.1%, a new record for the lowest supply ever.
  • Prices have increased from $1,747 to $1,805 in the past 24 hours.
  • Liquidation data suggests that on the longer side, a value of $50 million has crossed since yesterday.
  • DeFi and NFT are largely responsible for restricting the supply of ETH, apart from whale investors.

Ethereum Supply Caught in a Downward Slope

The total circulating supply of Ethereum on cryptocurrency exchanges is a key factor in influencing the price of ETH. In the case of an upward flow, the metrics give a hint that investors are accumulating ETH in their wallets. When the supply is high, it indicates that investors are inclined toward selling their holdings.

Below, you can find a chart showcasing the supply of Ethereum (ETH) on cryptocurrency exchange platforms.

Ethereum (ETH) Supply

Since the launch of Ethereum in July 2015, the supply has never touched 10.1% until May 13, 2023. The downhill slope of ETH supply has been consistent since mid-September 2022. This prolonged drop is often observed as a sign of investors accumulating tokens for a potential surge in demand during a period of low supply. As prices are expected to rise, a bullish rally might be the result until supply increases once again.

Are Investors Accumulating ETH Tokens?

Currently, the prices of Ethereum (ETH) are on the rise, and prices are approximately $1,805 with 2.47% growth. In the past 24 hours, values hovered between $1,747 and $1,816, but the traded volume is still in the red with a 22.71% drop.

Coinglass data suggests that in the past 24 hours, liquidation of Ethereum (ETH) was mostly on the long side at a total of more than $50 million, and on the short side, $14 million was traded. Even with such liquidations, the market suggests that investors are likely to hold onto their tokens, restricting the supply.

Furthermore, the supply of Ethereum is restricted by two Web3 sectors: decentralized finance (DeFi) and non-fungible tokens (NFT).

According to the data from the DeFi Pulse register, all projects in the sector held onto 9.4 million ETH. This number has decreased since March 8 to 1.5 million ETH, but in the current market, the supply is influenced slightly by the DeFi industry. In the case of NFT, the supply is unknown, but as the craze increases, it is believed that a significant portion of Ethereum tokens is being contributed toward it.

The current stats for Ethereum show that prices are on the rise after an 8.19% drop in the past week. Ethereum supply is slightly on the rise, suggesting that trades are happening but with quite a low volume.

It is still unclear whether the prices are going to increase, but it seems that investors are not in the mood to sell their ETH assets.

About Aritra

Aritra is an experienced cryptocurrency analyst with a deep understanding of market shifts. His proficiency in identifying investment opportunities has helped him build a strong sense of the Web3 world. Aritra is a trader turned writer and presently predominates in the crypto writing industry as he can guide new investors as well. When he is not decoding crypto jargon, he can be found streaming on Twitch.

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