Supply Shock in Ethereum: Could Destroy the Fate of Altcoins.

Since the approval of spot Ether exchange-traded funds (ETFs) in the US on May 23, there has been an outflow of more than $3 billion worth of Ether from centralized crypto exchanges; This signals a possible upcoming supply squeeze.

According to CryptoQuant data, the amount of Ether on exchanges dropped by approximately 797,000 between May 23 and June 2; This is equivalent to $3.02 billion. The amount of Ether on exchanges dropped by approximately 797,000 between May 23 and June 2; This is equivalent to $3.02 billion.

Glassnode data shared by BTC-ECHO analyst Leon Waidmann shows that the percentage of circulating Ether supply held on exchanges is also at its lowest level in recent years, at only 10.6 percent.

Last week, Bloomberg #ETF analyst Eric Balchunas predicted that Ether ETFs would be launched by the end of June. Some analysts believe that Ether could break its November 2021 all-time high of $4,870 as spot Ether ETFs begin trading due to increased demand pressure.

DeFi report crypto analyst Michael Nadeau said in a May 28 report that Ether could benefit from demand pressure more than Bitcoin because it does not have the same level of “structural selling pressure.” For example, Bitcoin miners occasionally have to sell BTC to cover mining costs, while Ethereum validators do not incur the same operating expenses as Bitcoin miners.

However, there are also concerns that the Grayscale Ethereum Trust (#ETHE ), which manages $11 billion in funds, could impact Ether's price action if it follows the Grayscale Bitcoin Trust (#GBTC ), which saw $6.5 billion in outflows in the first month after approval. available.
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