Following the shortage of supply for Bitcoin (BTC) in stock exchanges, this time, Ethereum (ETH) reserves in the exchanges decreased significantly. The liquidity crisis started to hit Ethereum; It was reported that ETH reserves in stock exchanges melted by 20%.
CryptoQuant CEO Ki Young Ju said with the graphics he shared, that a liquidity crisis may have started for Ethereum after Bitcoin. Saying that apparently there is a shortage of reserves for ETH on the sales side, Ki Young Ju announced that Ethereum reserves decreased by 20% compared to May 2020.
ETH liquidity crisis at the door
CryptoQuant CEO Ki Young Ju stated that the Ethereum market may be facing a liquidity shortage. Sharing data on ETH exits in stock exchanges, the CEO underlined that like BTC, Ether may soon experience a shortage of reserves.
Cryptocurrency data analytics company Glassnode shared data to support the CryptoQuant CEO. Daily ETH output in exchanges reached the highest level of the last four months with 42 million 607 thousand 586 coins. Meanwhile, the number of ETH active addresses has also increased by 8.3% in the last 24 hours. According to Glassnode data, ETH transaction volume broke the record for the last 9 months.
Will the illiquidity trigger the Ethereum price increase?
The leading altcoin Ethereum has raised over $ 100 in the last 24 hours to levels it has not seen since January 2018. While many analysts anticipated that Bitcoin could follow a record for Ether as well, the ETH price pulled back before it managed to hit an all-time high.
Completing Phase 0 for the Ethereum 2.0 transition this year and taking an important step, Ether started staking activities on the ETH2 contract. Currently, about 2% of the ETH supply is tied to the Ethereum 2.0 contract. CryptoQaunt CEO Ki Young Ju stated that with the Ethereums locked into the contract, the lack of liquidity in the stock markets could increase the Ethereum price in the long run.