Ethereum Surges 3% as Exchange Supply Plummets 37% Post-Merge
Leaving its counterpart Bitcoin [BTC] behind, ETH was surging by 3.27% over the last 24 hours. The asset rose to a high of $1,562.03 all the way from a low of... But the price surge is only part of the story. The real driver could be a significant shift in Ethereum's supply dynamics.
Ethereum Exchange Supply Drops 37% Since The Merge
On-chain data from Santiment shows the Ethereum supply on exchanges has dropped by 37% since the Merge in September last year. As per the on-chain analytics firm Santiment, this dramatic decrease signals a potential bullish trend for Ether (ETH).
Santiment reports that on the date of the Merge, September, the Ethereum supply on exchanges was around 19.12 million ETH. Since then, the indicator has plummeted. The Merge reduced exchange ETH by 37%. Since exchanges have less ETH to sell, a steady fall in supply is optimistic.
The Deflationary Effect Post-Merge
Following the London upgrade, ETH’s supply has become deflationary due to the introduction of a fee-burning mechanism through Ethereum Improvement Proposal (EIP). Ether (ETH), la segunda mayor criptomoneda por capitalización bursátil, ha experimentado un descenso constante de la oferta de intercambio en los últimos seis meses post-Merge. The Ethereum Supply On...
What Does This Mean For Ethereum's Future?
This dramatic reduction in exchange supply suggests increasing investor confidence and long-term holding strategies. With less ETH readily available for sale, the potential for price increases is amplified. Keep an eye on on-chain data, as the relationship between Ethereum's supply dynamics and price action will continue to be crucial in the coming months.