Is Ethereum Becoming Scarcer Than Bitcoin on Exchanges?

Ethereum (ETH) statistics have shown that the digital currency may be suffering from a greater shortage than expected. According to on-chain data, Ethereum is now accumulating at a faster rate than Bitcoin.

The Divergence Between Ethereum and Bitcoin

According to data from Leon Waidmann of BTC-Echo, Ethereum is becoming scarcer than Bitcoin. While there are indicators that show the individual performance of BTC and ETH, their correlation by exchange balance is also crucial.

According to the attached Glassnode data shared by Waidmann, the current balance of the Ethereum exchange is pegged at 10.189%. In contrast, Bitcoin’s stands at 15.08%, a figure that suggests a narrowing gap.

Since the conversation around Ethereum Spot ETF ETH has become a key part of the trading strategy, and demand for ETH has increased. Investors suddenly started buying Ethereum at a frantic pace, which has led to a drop in trading platforms. The investor action is understandable, considering how Wall Street money is expected to buy Ethereum when the ETF launches.

This projection is not without foundation judging by the observed trend. Bitcoin Spot ETF products. When the BTC ETF hit the market in January, leading companies like Susquehanna International Group (SIG) has been going all out to buy the asset. The buybacks have played a crucial role in sending Bitcoin’s price to an all-time high (ATH) of $73,750.07.

Despite the rapid decline in Ethereum’s exchange balance, the impact on ETH’s price is not visible. At the time of writing, Ethereum is trading at $2,983.03, down 2.31% in the last 24 hours. The coin’s 24-hour low and high prices stand at $2,956.99 and $3,080.11, respectively.

ETH revival plans

The future growth of ETH now depends on the long-awaited new decision from the US SEC. After giving the green light to the 19b-4 forms for the Ethereum spot ETF application a few weeks ago, the wait for S-1 is near.

While the launch timeline remains largely speculative, the next two weeks appear crucial. ETF Store President Nate Geraci believes the regulator will do whatever it needs to do to ensure Ethereum ETF Begins Trading in 2 Weeks.

Learn more: Peter Schiff Claims Bitcoin Whales Have Framed ETF Investors as ‘Bag Holders’

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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-world applications of blockchain technology and innovations aimed at fostering the general acceptance and global integration of this emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media outlets and sites. Benjamin Godfrey is passionate about sports and agriculture. Follow him on Twitter, Linkedin

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial losses.

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