Blockchain
Is Ethereum Becoming Rarer Than Bitcoin on Exchanges?
Ethereum (ETH) metrics have shown that the digital currency may be experiencing scarcity more than previously expected. According to on-chain data, Ethereum is now being accumulated at a faster rate than Bitcoin.
The Divergence Between Ethereum and Bitcoin
According to data from Leon Waidmann of BTC-Echo, Ethereum is becoming rarer than Bitcoin. While there are metrics that show the individual performance of BTC and ETH, their correlation to exchange balances is also crucial.
🚨HUGE divergence between #Ethereum AND #Bitcoin!
ETH is becoming SCARRIFIER than BTC.#ETH
Exchange balance: 10.189% 📉#BTC Exchange balance: 15.086% 📈
The gap is WIDENING! photo.twitter.com/UnuejbnS8l
— Leon Waidmann | Onchain Insights🔍 (@LeonWaidmann) July 7, 2024
According to Glassnode data shared by Waidmann, Ethereum’s current trading balance is set at 10,189%. In contrast, Bitcoin’s is at 15.08%, a figure that suggests a narrowing gap.
Since the conversation around Spot Ethereum ETFs came to the fore, demand for ETH grew. Investors suddenly began buying Ethereum at a frenetic pace, justifying the drain on trading platforms. The investors’ action is understandable, considering how Wall Street money is expected to buy Ethereum when the ETF launches.
This projection is not unfounded judging from the trend observed in Bitcoin Spot ETFs products. When the BTC ETF hit the market in January, major companies such as
Susquehanna International Group (SIG) went all out to buy the asset. The purchases played a crucial role in sending the price of Bitcoin to an all-time high (ATH) of $73,750.07.
Despite the rapidly depleting trading balance for Ethereum, the impact on the price of ETH is not visible. At the time of writing, Ethereum is changing hands for $2,983.03, down 2.31% in the last 24 hours. The minimum and maximum trading price of the coin in the last 24 hours are $2,956.99 and $3,080.11 respectively.
ETH Recovery Plans
ETH’s future growth is now centered on the new, long-awaited decision from the US SEC. After greenlighting Forms 19b-4 for spot Ethereum ETF applications weeks ago, the wait for S-1 is near.
While the timing of the launch remains largely speculative, the next 2 weeks appear crucial. ETF Store President Nate Geraci believes the regulator will do whatever it takes to make Ethereum ETF to start trading in 2 weeks.
To know more: Peter Schiff Argues Bitcoin Whales Have Turned ETF Investors Into ‘Bag Holders’