Ether supply on exchanges is now at a 9-year low: specifically 18.95 million ETH as of February 18, at the time of writing. This suggests investors are now moving $ETH into cold storage, presumably for long-term HODLing purposes.
If the ecosystem is overall looking to hold, rather than trade Ether, the historic all-time lows supply significantly increases the odds of ‘supply shock’ occurring, which would inevitably power an $ETH bull run and skyrocket the price.
Basic economics dictate that a supply shock happens when the demand of an asset exceeds the supply, creating a significant gap. This ultimately results in an increase in price.
$ETH has not been able to sustain the $4K mark so far, trading in the range of $4.1K to $2.2K since the last year. However, analysts believe this supply shock could just be what it needs.
Add to this the possibility of $ETH staking, which could tighten supply and boost investor confidence in Ethereum as a long-term investment.
The BTC and ETH Trains Wait for Nobody
Nicolai Sondergaard, a crypto analyst, said that something similar is happening with Bitcoin too. $BTC reserves are now at a 3-year low with only 3.5M $BTC left with exchanges. Swelling demands and a shift towards long-term holdings are big positives for the crypto industry.
According to Dr. Jan Wüstenfeld, there’s also less new capital entering the space, and record numbers of tokens being created. This suggests a significant battle for liquidity, perhaps even a dry out in the short term. Of course, it makes sense to be more risk-averse when you’re not sure about the best way forward, even the most degens of crypto degens know that!
If you want a piece of the upcoming frenzy, this might just be the right time for fresh investments, and with stablecoins rearing for another bull run, altcoins will almost certainly follow suit. Here are some of the best ERC-20 altcoins that can benefit from surging $ETH and $BTC prices.
1. BTC Bull Token ($BTCBULL) – Best ERC-20 Altcoin to Benefit from $BTC’s Growth
BTC Bull Token ($BTCBULL) doesn’t just reduce the cost of investing in Bitcoin, but also exponentially increases the amount of money you stand to make if and when $BTC catapults to new highs.
As the only crypto on the market to give out free $BTC to token holders, BTC Bull will see significant price appreciation alongside Bitcoin’s growth. Is it the next 100x meme coin? Quite possibly, yes.
How does it work? If you’re a…
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