Ethereum accumulation outpaces Bitcoin, indicating potential scarcity

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8th July 2024 – (New York) Recent on-chain data analysis suggests Ethereum (ETH) is becoming increasingly scarce, with accumulation rates outstripping those of Bitcoin (BTC). Insights from Leon Waidmann of BTC-Echo, supported by Glassnode statistics, highlight a notable divergence in the storage trends of these two leading cryptocurrencies.

As of the latest data, Ethereum’s presence on exchanges has decreased to 10.189% of its total supply, compared to Bitcoin’s 15.08%. This shift indicates a tighter gap between the two digital assets, suggesting a growing preference for Ethereum among investors.

This trend has been particularly pronounced since discussions about a potential Ethereum ETF began to intensify. Anticipation of new investment products has historically sparked increased buying activity. The market witnessed similar patterns with Bitcoin; following the launch of the BTC ETF in January, significant purchasing by major firms like Susquehanna International Group propelled Bitcoin to a record high of $73,750.07.

Despite Ethereum’s reduced exchange balance, this has yet to translate into a significant price increase. Currently, Ethereum trades at about $2,983.03, marking a slight decline of 2.31% over the past day. Its trading activity fluctuates, with recent prices ranging from $2,956.99 to $3,080.11.

The future trajectory for Ethereum could hinge on upcoming decisions from the U.S. Securities and Exchange Commission (SEC). The SEC recently moved forward with the procedural aspects of an Ethereum ETF, heightening anticipation for its final approval. The next two weeks are seen as critical, with industry experts like Nate Geraci, President of ETF Store, expressing optimism about the SEC’s readiness to launch the Ethereum ETF.