### Ether’s Supply Shock: The Altcoin Market's Fate Hangs in the Balance
The cryptocurrency world is buzzing with anticipation as Ethereum faces a potential supply squeeze that could shake the very foundations of the altcoin market. The catalyst? The recent approval of spot Ether exchange-traded funds (ETFs) in the US on May 23.
Since this landmark decision, a staggering $3 billion worth of Ether has flowed out of centralized crypto exchanges. This massive outflow, quantified at approximately 797,000 ETH between May 23 and June 2, hints at a looming supply shortage. The data from CryptoQuant paints a clear picture: investors are moving their Ether off exchanges, potentially bracing for a significant price surge.
Adding fuel to the fire, Glassnode data analyzed by BTC-ECHO's Leon Waidmann reveals that the percentage of circulating Ether held on exchanges has plummeted to its lowest in years, now at just 10.6%. This drastic reduction signals that a major shift is underway.
### The Potential Explosion in Ether’s Value
Bloomberg’s top ETF analyst, Eric Balchunas, has predicted that Ether ETFs could hit the market by the end of June. As the trading of spot Ether ETFs commences, analysts are divided yet optimistic. Some foresee Ether shattering its all-time high of $4,870 from November 2021, driven by the surge in demand.
Michael Nadeau, a DeFi report crypto analyst, highlighted on May 28 that Ether might benefit more from this demand pressure compared to Bitcoin. Unlike Bitcoin miners, who frequently sell BTC to cover hefty mining costs, Ethereum validators face lower operating expenses. This structural difference could lead to a more significant upward price movement for Ether.
on the brink of a historic moment!