Ether (ETH) stored on centralized exchanges hits 5-year low: Data

Ether balances on centralized crypto exchanges have reached a five-year low. According to the latest data from Glassnode, there are currently 17.8 million ETH on exchanges – a level not seen since July 2016.

• This figure must represents Less than 15% of the total token supply of the Ethereum network. To put things in perspective, during the bull market of 2021 the exchange rate was recorded at around 26%.

• Such a trend is generally considered bullish as it means that the supply of the crypto-asset available for purchase is limited. Additionally, there is not a lot of ETH ready to be sold immediately on CEX.
• The supply of ETH on exchanges started falling in September 2022. The fall became even more apparent after the bankruptcy of FTX two months later as subsequent events shook investor confidence in centralized custodians.
• However, the decrease in ETH balances on exchanges coincided with an increase in staking this month. So, the figures for ETH at stake are increased Since the beginning of May, Shepela rose from 19.3 million before the upgrade to more than 21.3 million.
• The upgrade on April 12 essentially enables validators to withdraw their staked ether from the Beacon Chain after three years. Notably, more and more validators are re-staking their ETH, which could be interpreted as a drop in the token’s supply as bullish for its price trajectory.
• crypto potato It was earlier reported that within a week of the Shepela upgrade the Ether staking volume exceeded the amount of the crypto-asset.
• The inflow appears to have prompted institutional staking service providers and investors to reestablish rewards following withdrawals.

Ether balances on centralized crypto exchanges have reached a five-year low. According to the latest data from Glassnode, there are currently 17.8 million ETH on exchanges – a level not seen since July 2016.

• This figure must represents Less than 15% of the total token supply of the Ethereum network. To put things in perspective, during the bull market of 2021 the exchange rate was recorded at around 26%.

• Such a trend is generally considered bullish as it means that the supply of the crypto-asset available for purchase is limited. Additionally, there is not a lot of ETH ready to be sold immediately on CEX.
• The supply of ETH on exchanges started falling in September 2022. The fall became even more apparent after the bankruptcy of FTX two months later as subsequent events shook investor confidence in centralized custodians.
• However, the decrease in ETH balances on exchanges coincided with an increase in staking this month. So, the figures for ETH at stake are increased Since the beginning of May, Shepela rose from 19.3 million before the upgrade to more than 21.3 million.
• The upgrade on April 12 essentially enables validators to withdraw their staked ether from the Beacon Chain after three years. Notably, more and more validators are re-staking their ETH, which could be interpreted as a drop in the token’s supply as bullish for its price trajectory.
• crypto potato It was earlier reported that within a week of the Shepela upgrade the Ether staking volume exceeded the amount of the crypto-asset.
• The inflow appears to have prompted institutional staking service providers and investors to reestablish rewards following withdrawals.