No Ethereum (ETH)? Exchanges Report Substantial Outflows

Ethereum’s exchange supply is shrinking after the October 29 Binance hack, but on-chain data suggests there is something more interesting hiding behind the scenes. The two-stage decline in exchange-held ETH could reflect the liquidity contraction rather than a minor panic-fueled outflow. Between October 28 and November 2, the share of Ethereum’s total supply held on exchanges dropped from 3.56% to 3.20%, a decline of 0.36%. Just over half of that drop happened on October 29, the same day as the reported Binance exploit . According to TRM Labs, hackers drained around 200,630 ETH from Binance’s hot wallet. Instead of dropping right away, ETH balances on top exchange addresses actually grew by around 39,000 ETH on October 29. The bigger drop came later.

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