The balance of ether on centralized cryptocurrency exchanges has 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.
- Basically this number Represent Less than 15% of the total token supply of the Ethereum network. To put things in perspective, the exchange balance has been recorded at around 26% during the 2021 bull market.
- This trend is usually considered bullish as it means that the supply of crypto assets available for purchase is limited. In addition, there is not a lot of ETH ready to be sold immediately on CEXs.
- The supply of ETH on exchanges began to decline in September 2022. The decline was most pronounced after FTX slid into bankruptcy two months later as subsequent events shook investor confidence in central custodians.
- However, the decline in ETH balances on exchanges this month coincides with a rise in staking. As such, the accumulated ETH numbers have more From 19.3 million before Chabela’s promotion to more than 21.3 million since the beginning of May.
- The upgrade on April 12 essentially enabled auditors to pull the observed ether from the beacon chain three years later. Notably, more and more validators are revaluing their ETH, thus causing the token’s supply to drop could be seen as bullish for its price trajectory.
- Potato encryption I previously reported that the amount of ether storage exceeded the amount of crypto assets withdrawn within a week after Shabella’s upgrade.
- The influx appears to have been driven by institutional buyout service providers and investors reinvesting rewards after pullouts.
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