According to CoinDesk, Goldman Sachs cited on-chain data in a report on Tuesday that the supply of Bitcoin and Ethereum on exchanges fell in June as increased regulation and criminal activity prompted holders to prefer self-custody.
The report said that the supply of Bitcoin on exchanges fell by 4%, close to the level of December 2022, which is also the lowest level since November 2020, before the start of the 2021 bull market; Ethereum supply fell by 5.8%, reaching the lowest point since May 2018. The bank said that this trend was caused by multiple reasons.
Goldman Sachs noted that Bitcoin miners sent a record amount of BTC to exchanges in June as Bitcoin performed strongly. The report said that the total amount of Bitcoin sent by miners to exchanges that month almost doubled from May to $99 million.
As transaction fees returned to normal in June after network congestion in May, monthly address activity for Bitcoin and Ethereum rebounded, increasing by 15.5% and 37.5% respectively. Goldman Sachs pointed out that the average daily destruction of Ethereum fell by 65.1% month-on-month, and the average daily transaction fee fell by 63.3% month-on-month.
Additionally, new on-chain activity also increased last month, with the average daily number of new addresses for Bitcoin and Ethereum increasing by 9.8% and 48.2% from a month ago.