Research: Major exchanges only hold 7% of Ethereum's circulating supply

According to the latest statistics, only about 7% of the total supply of Ether is currently held on cryptocurrency exchanges, and this percentage has been decreasing over the past few years. The data also shows significant changes in the amount of Ether held on exchanges among different exchanges in the past.

The cryptocurrency monitoring platform TokenAnalyst recently released statistical data on the changes in Ethereum reserves on various exchanges since 2015. The reserves peaked in 2016 and have been steadily decreasing since then, with Kucoin currently holding the highest reserves.

Sharp Decline in Ethereum Reserves on Exchanges

The data focuses on several mainstream exchanges, showing that in 2015, the amount of Ethereum stored on exchanges was less than 5 million, but surged to 20 million in the summer of 2016.

A report indicates that since 2016, exchange reserves have been steadily decreasing and are currently below 7 million Ethereum, accounting for only 7% of the current Ethereum supply.

The safe storage of cryptocurrencies should be a top priority for any investor. While the security of most exchanges has significantly improved over the years, for more cautious investors, cold wallets remain a preferred choice for long-term storage of large amounts of cryptocurrencies.

Decline of Established Exchanges

The data also illustrates the changing dominance of cryptocurrency exchanges. The difference in Ethereum reserves held by Poloniex three years ago compared to now is significant, with Binance currently having the largest increase in reserves.

As previously reported by ABM, Poloniex, established in 2014, was one of the early exchanges and was once a top exchange in terms of liquidity and trading volume. It was acquired in October this year by the Asian investment group and Tron founder Justin Sun.

Furthermore, some cryptocurrency analysts believe that Ethereum is nearing its long-term bottom and is likely to end its correction of over 800 days.

The analyst on Twitter supports this view with arguments including the formation of a head and shoulders pattern, upcoming long-term support levels, and significant bullish divergences.

The ETH/BTC trading pair for Ethereum and Bitcoin has also started to rise for the first time in two years, which is considered a positive development for Ethereum supporters amidst the recent market downturn.

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