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The ETH reserves in CEX continue to decline, reaching a new low since July 2016.
Odaily News The DeFi Report founder Michael Nadeau posted data on X indicating that the “supply shock” of ETH is occurring. Since the third quarter, the supply of ETH on centralized exchanges (CEX) has decreased by 6.7%, reaching a new low since July 2016. As ETH asset management institutions gradually begin to implement on-chain strategies to enhance yields and the value per ETH, this figure is expected to continue declining, with more funds shifting to on-chain which may trigger further reflexivity — as price movement improves, on-chain activity (and fundamentals) will also concurrently improve.