For today’s on-chain edition, I wanted to share a chart that I monitor every few weeks regarding Ethereum supply.
The Ethereum supply owned by the top addresses (i.e. whales) has been in an uptrend since December 2020.
It is also interesting to note the approximate inverse relationship between supply on exchanges vs collection held by whales (compare red line versus purple line above). Since the recent price correction, some immediate callouts come to attention:
1. We have had significantly large exchange outflows during the local price bottom of $1,800 from 23rd May (see orange circle). However, I will waive caution on this aspect as I have also separately tracked large inflows into exchanges, though not to the same extent.
2. Supply held by top non-exchange addresses have slightly increased by 2% (see purple circle). I do not think this is majorly significant considering the 17% change since March.
3. The supply of Ethereum on exchanges has increased by 0.6% during the price correction (see red circle).
It’s hard to find any definite conclusions for picking either a short-term bullish or bearish case when assessing Ethereum's recent on-chain metrics. It’s best we continue to monitor Ethereum supply on exchanges and how that changes regarding the two other metrics: exchange outflow & supply held by whales.
Stay tuned for the next update.
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