Ethereum (ETH) supply on cryptocurrency exchanges has reached its 28-month low, according to BeInCrypto. Citing the data from crypto analyst company Santiment, the source reports that a percentage of Ether on crypto exchanges is now below 20% of the total supply.
According to the source, the ratio has seen a steady decline from the 27% recorded over a year ago. Back then, the price of ETH was about $110 per coin. However, cryptocurrency markets experienced growth in the past few months. Moreover, several institutional investors showed their interest in Ether, buying large amounts of crypto.
The decrease in the supply of Ethereum could lead to an increase in the price of the token. In particular, a crypto analyst Lark Davis even suggests an increase by 400%, writes The Daily Hodl.
A Chinese beauty app maker Meitu purchased Ethereum worth $28.4 million on March 17, adding to its previous purchase of $22.1 million in ETH on March 5. Grayscale investments also invested in Ethereum, having bought 243,519 ETH in February. Moreover, the company’s Ethereum Trust continues to acquire additional ETH.
Ethereum is the second-largest cryptocurrency on CoinMarketCap.com, with a market cap of over $207 billion and a 24-hour trading volume of over $19 billion. It is trading at around $1,802 per coin at the time of writing.