Ethereum Supply Squeeze? 10-Year Low Ignites Price Speculation
The supply of Ethereum on cryptocurrency exchanges has fallen to its lowest level since November 2015, with approximately 8.97 million ETH currently held. This decline indicates that more investors are moving their Ethereum into decentralized finance (DeFi) protocols and staking, reducing the amount available for sale on exchanges. Despite this tightening supply, the price of Ethereum has dropped by about 45% from its December high, reaching around $1,899 on March 21. Factors contributing to this price decline include overall market sentiment, macroeconomic conditions, and increased competition from other blockchain systems. Standard Chartered has revised its year-end price target for Ethereum from $10,000 to $4,000 due to competition from layer-2 networks. Potential recovery could be influenced by the introduction of staking exchange-traded funds (ETFs), which may attract institutional investment if regulations permit.
