Ethereum supply on exchanges falls after Binance attack, liquidity concerns rise

A recent decline in the supply of Ethereum held on major exchanges has been observed, following a security breach at Binance on October 29. On-chain data suggest that this withdrawal may be linked more to a reduction in market liquidity rather than an immediate panic reaction. Between October 28 and November 2, the share of Ethereum reserves held on exchanges decreased from 3.56% to 3.20% of the total ETH supply. More than half of this 0.36 percentage point drop occurred on October 29, the day the Binance attack was disclosed.