The crypto analytics provider – Santiment – revealed that almost 90% of Ethereum’s supply is currently stored in self-custody addresses. The last time the figure was so high was in 2015, shortly after the protocol’s native token saw the light of day.
The new data comes at a time when investors seem to have lost some of their faith in centralized exchanges. Withdrawals from Binance soared in the past 24 hours, prompted by the recent clash between the platform and the CFTC.
- Santiment’s data showed that only 10.31% of Ethereum’s supply is now held on exchanges, the lowest ratio since the birth of the token.
- It is worth noting that consumers have started moving their holdings en masse to self-custody addresses since September last year.
- The process intensified in November during the FTX meltdown, which undermined the trust in centralized platforms.
- It seems that some investors are rushing to move their possessions from Binance to cold wallets after the US CFTC threatened to sue the exchange for allegedly violating trading regulations.
- Nansen showed that the company saw $400 million in net outflows over the past 24 hours. Interestingly, data released by Thanefield Capital indicated that investors had withdrawn approximately $850 million from the platform in the 12 hours preceding the indictment.
- Binance had to cope with substantial withdrawal requests again at the end of last year when US federal prosecutors hinted they could file money laundering charges against it.
- The firm processed all transactions without registering any problems, while CEO Chanpeng Zhao (CZ) dismissed the accusations as “FUD.”