Ethereum (ETH) May Be Experiencing More Scarcity Than Previously Anticipated

The digital currency Ethereum (ETH) may be experiencing more scarcity than previously anticipated, according to measurements. The on-chain data shows that Ethereum is now being added to the network at a rate that surpasses Bitcoin.

Ethereum scarcity is outpacing Bitcoin as anticipation for an ETF and rising investor interest is driving a huge demand surge for ETH.

Analyzing Ethereum and Bitcoin Exchange Balances

Metrics show that Ethereum (ETH) might be experiencing more scarcity than initially realized. On-chain data shows that the rate at which Ethereum is being added to the network has surpassed that of Bitcoin.

According to data highlighted by BTC-Echo's @LeonWaidmann, Ethereum is actually becoming scarcer than Bitcoin. While metrics show how Bitcoin and Ethereum have fared individually, their relative scarcity in terms of exchange balances is also key.

The latest Glassnode data shared by Waidmann shows that the current Ethereum exchange balance is at 10.189%. In comparison, Bitcoin's exchange balance is at 15.08%, indicating that the gap is closing.

ETF Anticipation Is Dictating Market Activity

Demand for Ethereum (ETH) has surged following reports of a spot Ethereum ETF. Investors began buying up Ethereum at a rapid pace, overwhelming trading platforms. The activity makes sense, especially considering that Wall Street money is also expected to be buying up ETH once the ETF launches.

As Coingape highlights, this anticipation is supported by the activity observed with spot Bitcoin ETF products. Notably, companies like Susquehanna International Group (SIG) reportedly poured resources into buying up the Bitcoin ETF when it launched in January. These buyups are said to have contributed to Bitcoin's price reaching an ATH of $73,750.07.

Current Ethereum Price Movements

Despite the suggestion that Ethereum's exchange balance is depleting quickly, the impact on the coin's price is not yet evident. Ethereum is trading at $2,983.03 per coin, down by 2.31% over the last 24 hours. The coin's 24-hour trading price saw a low of $2,956.99 and a high of $3,080.11.

At this point, the next development for Ethereum will largely depend on the US Securities and Exchange Commission, which has been the subject of anticipation for an extended period. After approving 19b-4 forms for spot Ethereum ETF applications a few weeks ago, the Commission is yet to approve S-1 filings.