The supply ratio of Ethereum on the exchange is the lowest since 2018

Editor's Note: This article comes fromCybtc Blockchain (ID: cybtc_com), reprinted by Odaily with authorization.

Editor's Note: This article comes from

Cybtc Blockchain (ID: cybtc_com)

, reprinted by Odaily with authorization.

“The percentage of Ethereum on exchanges continues to decline and is transferred to offline holder wallets. Exchange tokens account for only 22.06% compared to 26.33% five months ago, which remains one of the most promising signals for USD bulls one."

secondary title

The data provided suggests that Ethereum will continue to move away from exchanges. It will likely end up in wallets where it can be deposited or spent as GAS for defi (decentralized finance) or other dapps (decentralized applications). Users may move ETH into cold storage wallets as a long-term investment. On the other hand, they may also use it to facilitate various other smart contract based dapp applications.

secondary title

DeFi brings users to ETH

DeFi applications have boomed in the last year. TVL (total value locked) grew from about $600 million to almost $25 billion. This increases the demand for Ethereum, the "oil" of the Ethereum ecosystem. As such, the record growth in DeFi usage mirrors the yearly record for transaction fees set by Ethereum. By this stat, it has surpassed Bitcoin in 2020, gaining a whopping 83%. Increased usage in DeFi means users need more ETH to complete transactions.

secondary title