It’s been a mixed week for the overall crypto market. Ethereum [ETH], for one, registered a near 3% dip in a span of 24 hours, struggling to breach the $5k mark. The world’s second-largest crypto-asset witnessed a price pullback following the Security and Exchange Commission [SEC]’s decision to reject a spot Bitcoin Exchange Traded Fund [ETF] yesterday.
However, Santiment observed that Ethereum’s supply on exchanges declined by 15.66%, suggesting a lesser chance of sell-off and increased prospects of an upward price movement. The on-chain platform compared the data a year ago and found that the metric stood at 23.29% then, indicating investors are not keen to indulge in a selling spree despite its ongoing price consolidation, further fuelling hope for bullish price action. Commenting on the same, Santimnent noted,
Ethereum’s supply on exchanges sits at 15.66%. One year ago, this number sat at 23.29%. It’s clear that more and more ETH is moving safely to cold wallets for DeFi-related activity and holding, an encouraging sign for long-term price prospects.
Interestingly a few days ago, the price of the leading altcoin was nearing close to its all-time high. Tronweekly had reported the possibility of a supply squeeze condition that was driving the price factor upward. This was due to the staking contract hitting more than 8 million ETH and another 8 million tokens locked across the DeFi protocols.
But high transaction fees continued to plague the overall network driving users and enterprises to opt for other cost-effective options. However, that did not deter ETH advocates from believing that the token is poised for a brighter future and even has the ability to challenge the dominance of the current largest cryptocurrency, Bitcoin [BTC]. One of them is Kenneth Griffin.
Ethereum vs Bitcoin
CEO of the US hedge fund firm, Citadel, Kenneth Griffin recently spoke on the future of the cryptocurrency and predicted that Ethereum will soon replace the king coin’s overall dominance in the digital asset market. Moreover, other speculators are of the opinion that the leading altcoin will rise higher due to its varied use cases and the proposed transition to Proof-of-Stake protocol that will significantly bring down the transaction fees as well as the time.