• According to Santiment’s data, just 10.31% of Ethereum’s supply is held on exchanges.
• The last time the figure was so high was in 2015, shortly after the protocol’s native token saw the light of day.
• It seems that some investors are rushing to move their possessions from Binance to cold wallets after the US CFTC threatened to sue the exchange for allegedly violating trading regulations.
For The First Time Since 2015: Nearly 90% Of The ETH Supply Now In Self Custody
Crypto analytics provider – Santiment – has revealed that nearly 90% of Ethereum’s supply is currently stored in self-custody addresses. This ratio hasn’t been seen since shortly after ETH’s native token was released in 2015.
The new data comes as investors are losing faith in centralized exchanges and withdrawing their holdings en masse from them. Ever since September 2020, consumers have been flocking away from these platforms and this process intensified even more during November’s FTX meltdown.
CFTC Clash With Binance
Recently, the US Commodity Futures Trading Commission (CFTC) threatened to sue Binance for allegedly violating trading regulations. This sent shockwaves across the crypto space and prompted investors to withdraw their funds from the platform.
Million Dollar Outflows From Binance
Data collected by Nansen showed that $400 million were withdrawn from Binance in a 24 hour period following this news. Thanefield Capital also indicated that $850 million had left the platform prior to this announcement.
< h2 >Conclusion h2 > < p > It appears that many investors have lost faith in centralized exchanges and are moving their assets over to cold wallets for safekeeping purposes. This exodus has resulted in nearly 90% of Ethereum being stored in self-custody addresses – a ratio not seen since 2015. p >