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ETH supply hits a record low, on-chain capital flow intensifies reflexivity effect.
On August 12, a certain analyst shared an article stating that the supply shock of ETH is unfolding in real-time. So far in the third quarter, the ETH on centralized exchanges has decreased by 6.7%. It has now fallen to its lowest level since July 2016.
As ETH treasury companies begin to implement on-chain strategies to enhance yield and per-share ETH holdings, this figure is expected to continue to decline.
More capital flowing into the chain may trigger a stronger reflexivity effect, meaning that market activity and fundamentals will further improve as price trends enhance.