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Ethereum Sees 10-Year Low with 7-Week Plummet: What Will Happen to the Price? - Coin Bulletin
Ethereum (ETH), with the supply on exchanges dropping to its lowest level in 10 years, investors' expectations regarding future price movements are increasing.
According to Santiment data, the Ethereum supply has decreased by 16.4% over the last 7 weeks due to DeFi and staking options, reaching its lowest level on exchanges.
Ethereum investors are significantly reducing supply by withdrawing their tokens from exchanges recently with options like DeFi and staking. According to Santiment data, this has pulled Ethereum's supply on exchanges down to 8.97 million ETH. This is approximately the lowest level seen about 10 years ago, in November 2015.
In the last 7 weeks, it has been observed that the amount of Ethereum on exchanges has decreased by 16.4 percent. This change indicates that user behaviors in the Ethereum ecosystem have a significant impact on the supply in centralized exchanges. Investors prefer to hold their ETH on platforms providing liquidity by using DeFi applications and staking services.
How will it reflect on the ETH price?
The decrease in supply on exchanges can have a significant impact on the price of Ethereum. Falling supply can particularly affect prices upwards during times of increased demand.
In addition, investors withdrawing Ethereum from exchanges could be a behavior aimed at making longer-term investments. This also strengthens expectations that Ethereum's future value may increase.