New data from crypto analytics firm Santiment indicates that the supply of Bitcoin (BTC) on crypto exchanges is currently at its lowest point in over half a decade. According to Santiment, only 5.8% of the total supply of Bitcoin is currently sitting on crypto exchange platforms, which is the lowest level since December 2017.
This decrease in the amount of BTC on exchanges suggests that investors and traders are moving their Bitcoin off of exchanges and into private wallets. This could be driven by a desire to hold onto their Bitcoin as a long-term investment or to protect their assets from potential security breaches on exchanges.
Furthermore, Santiment highlights that there has been significant Bitcoin whale activity, with 57,400 BTC transactions per week. This indicates that large investors or institutions are actively buying and selling large amounts of Bitcoin. The presence of these whales in the market can have a significant impact on Bitcoin’s price and overall market sentiment.
In addition to the decrease in BTC supply on exchanges, Santiment also reveals that Bitcoin is currently leading in terms of having the highest amount of address activity among digital assets. This means that there is a large number of active Bitcoin addresses, indicating high user adoption and engagement with the cryptocurrency.
Following Bitcoin, the stablecoin Tether (USDT), smart contract platform Ethereum (ETH), layer-2 blockchain Polygon (MATIC), and BTC alternative Litecoin (LTC) have at least double the number of active addresses compared to other cryptocurrencies. This demonstrates the growing popularity and usage of these digital assets in various blockchain ecosystems.
The market analytics firm also provides insights into Ethereum, stating that the 10 largest addresses associated with the altcoin now hold over 35% of ETH’s overall supply. This increase in holdings by large addresses could be attributed to smaller investors capitulating their positions out of fear, doubt, and uncertainty (FUD) surrounding the recent market dip.
It is important to note that an increase in the concentration of holdings among a few addresses does not necessarily imply centralization of Ethereum. Instead, it reflects the behavior of smaller traders during periods of market volatility.
As of the time of writing, Bitcoin is trading at $26,001, while Ethereum is worth $1,649. These price levels indicate the current sentiment and market valuation of these cryptocurrencies. However, it is worth mentioning that cryptocurrency markets are highly volatile and subject to rapid changes.
In conclusion, Santiment’s data reveals an interesting trend in the crypto market, with a decrease in the supply of Bitcoin on exchanges and increased whale activity. Additionally, Bitcoin and other leading digital assets like Ethereum, Tether, Polygon, and Litecoin continue to see high address activity, showcasing their growing adoption and usage. However, it’s important for investors to approach the crypto market with caution, considering its inherent risks and volatility.
