According to the latest data, the supply of Bitcoin (BTC) and Ethereum (ETH) moved at record low levels last year. Only 30% of Bitcoin and 39% of Ethereum were in motion last year. These figures have been compiled since 2017 and are at the lowest level recorded since then.
Bitcoin and Ethereum Active Supply at Record Lows
According to data provided by The Block, the percentage of coins in motion hit record lows for both Bitcoin and Ethereum, the largest cryptocurrency and the largest altcoin, respectively.
At its peak, over 59% of Bitcoin supply was active between March 2017 and 2018. However, only 30.12% of Bitcoin supply changed hands last year. Ethereum, which saw over 86% of its supply in motion between July 2016 and 2017, also hit a record low with only 39.15% of its supply changing hands last year.
The record low active supply indicates that investors have entered a heavy HODL mode, meaning they are holding onto their BTC or ETH without moving it, which is highly positive in terms of price.
Bitcoin’s Active Supply Drops Dramatically Ahead of Block Reward Halving
The record low active supply of Bitcoin, recorded just before the upcoming halving, which is expected to take place in April of next year, is particularly noteworthy. According to data from The Block, the percentage of BTC that has remained untouched and inactive for three to five years is also at record lows. As known, the block reward halving reduces the reward amount in BTC that Bitcoin miners receive per block by 50%.
While only 58.58% of Bitcoin supply changed hands in the past three years, this ratio was above 73% at the peak in late 2019. The active BTC supply in the last five years has dropped from a maximum of 83% to 70.13%. However, the inactive coin supply is at an all-time high, and transactions on the network are nearing their peak.
