• 13 July, 2024
News

Hodlers’ Confidence Soars as Ethereum Hits All-Time Low on Exchanges

In a stunning display of confidence, Ethereum hodlers have pulled their tokens from exchanges en masse, with the amount of self-custodied ETH reaching levels not seen since the token’s inception nearly eight years ago.

According to data from crypto analytics firm Glassnode, the ratio of Ethereum on exchanges has reached an all-time low of just 10.31%, a clear sign that long-term holders are feeling optimistic about the future of the world’s second-largest cryptocurrency.

Source: Sanbase

This news comes as the price of Ethereum continues to climb, with the token currently trading at over $2,000. Despite recent market turbulence, Ethereum hodlers remain steadfast in their belief that the token’s underlying technology and use cases will continue to drive its long-term growth.

The move towards self-custody is a positive development for Ethereum, as it reduces the risk of theft or loss from centralized exchanges while also strengthening the network’s security.

As the cryptocurrency landscape continues to evolve, it is clear that Ethereum hodlers are leading the charge towards a more decentralized future, where users have greater control over their assets and the power to shape the direction of the industry.

This trend towards self-custody is not unique to Ethereum. Other cryptocurrencies have also seen an increase in hodlers choosing to store their assets in cold wallets or other forms of self-custody. However, Ethereum’s all-time low ratio of tokens on exchanges is particularly notable given its status as one of the world’s most popular and widely used cryptocurrencies.

One potential explanation for this trend is the growing awareness among crypto investors of the risks associated with centralized exchanges, which have been targeted by hackers and faced regulatory scrutiny in recent years. By holding their assets in cold storage, hodlers can reduce their exposure to these risks and maintain greater control over their investments.

Another factor driving the move towards self-custody is the increasing adoption of decentralized finance (DeFi) platforms, which allow users to earn interest on their crypto holdings, borrow and lend assets, and participate in other decentralized trading and investing forms. In addition, these platforms often require users to hold their assets in self-custody wallets, further incentivizing the trend away from centralized exchanges.

Conclusion

Despite the challenges facing the cryptocurrency industry, Ethereum hodlers remain optimistic about the future of the token and the potential of blockchain technology more broadly. As the adoption of cryptocurrencies continues to grow, self-custody and decentralized finance will likely become increasingly important features of the landscape, empowering users and reducing the risks associated with centralized control.

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