What to Know
- Ethereum exchange supply dropped from 3.56% to 3.20% following the Binance hack, reflecting substantial changes in cryptocurrency exchange holdings.
- TRM Labs estimated hackers stole 200,630 ETH, while major exchange addresses lost approximately 313,000 ETH following the restoration of withdrawals.
- Ethereum traded near $2,259 despite declining exchange balances, while Santiment reported uncertainty surrounding the destination of transferred cryptocurrency assets.
Ethereum exchange holdings have declined significantly following the Binance hack, with approximately 297,000 ETH leaving major exchange addresses. The reduction occurred across two separate phases, revealing substantial cryptocurrency movements surrounding the security breach and subsequent withdrawal restoration.
According to blockchain analytics platform Santiment, Ethereum’s exchange supply fell from 3.56% on October 28 to 3.20% by November 2. The platform identified distinct declines, with only the initial movement coinciding directly with the October 29 attack.
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Ethereum Exchange Holdings Decline Following $6 Billion Binance Security Breach
Santiment’s findings show that Ethereum‘s exchange supply decreased by 0.36 percentage points, representing a relative reduction of approximately 10.1%. Significantly, slightly more than half of this decline occurred on October 29, when hackers targeted Binance’s cryptocurrency holdings.
Blockchain intelligence firm TRM Labs estimated that attackers drained approximately 200,630 ETH from Binance’s hot wallet, while major exchange addresses gained 39,000 ETH. This increase indicates that the attack did not immediately reduce Santiment’s tracked exchange balances, with substantial declines emerging following withdrawal restoration.
Between November 1 and November 2, major exchange addresses recorded a combined decrease of approximately 313,000 ETH. Across the complete reporting period, these addresses lost approximately 297,000 ETH, representing 5.4% of their previous holdings. Santiment emphasized that exchange data cannot establish whether the transferred assets entered cold storage or alternative trading platforms.
Ethereum Price Remains Under Pressure Despite Falling Exchange Balances
Santiment’s accompanying chart reveals that Ethereum exchange holdings had already been declining for several months before the Binance security incident. Exchange supply stood near 4.6% in May before gradually retreating toward November’s reported levels.
Similarly, major exchange address holdings declined from approximately 5.9 million ETH to 5.24 million ETH during the displayed period. Meanwhile, Ethereum traded near $2,259.47, remaining below its September highs despite the sustained reduction in exchange balances.
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