Santiment has released data indicating that almost 90% of Ethereum’s supply is held in self-custody addresses. This is the highest proportion since the token’s launch in 2015. The findings come as investors begin to lose faith in centralized exchanges, evidenced by a surge in withdrawals from Binance over the past 24 hours following a clash between the platform and the CFTC. Santiment’s data reveals that just 10.31% of Ethereum’s supply is currently held on exchanges, marking the lowest ratio since the token’s launch.
- Since September 2020, consumers have moved their holdings en masse to self-custody addresses, a trend that intensified in November after the FTX meltdown.
- Certain investors seem to be moving their assets from Binance to cold wallets in response to the CFTC’s threat to sue the exchange for allegedly breaking trading regulations. According to Nansen’s data, the company saw $400m in net outflows over the past 24 hours, with data from Thanefield Capital suggesting investors withdrew approximately $850m from the platform in the 12 hours before the indictment.
- This isn’t the first time Binance has faced substantial withdrawal requests; it experienced a wave of such requests at the end of last year when US federal prosecutors hinted that they might file charges for money laundering. The firm processed all transactions without difficulty, and CEO Chanpeng Zhao dismissed the accusations as “FUD.”
