ETH Supply Hits a Historic Low
As of May 26, the amount of Ether (ETH) available on crypto exchanges has plummeted to a jaw-dropping 17.86 million ETH, marking a five-year low. This drop, the steepest since April 2018, indicates a shift in how traders hold their assets.
Are Traders Hoarding ETH?
According to Glassnode data, only 14.85% of the total Ether supply is currently held on centralized exchanges. This is a stark decrease from the 25-26% seen during the crypto bull run in 2021. It raises the question: are traders hoarding their Ether?
Timeline of the Decline
The downturn began around September 2022, not long after the infamous FTX crisis in November, which left many crypto enthusiasts scrambling for their coins. The situation worsened further when the Shapella upgrade hit the stage.
What is the Shapella Upgrade?
The Shapella upgrade was a significant change for the Ethereum network, allowing thousands of validators to withdraw their staked ETH. Interestingly, most did not choose to unstake but merely withdrew their staking rewards—enough to make anyone wonder if they were just treating it like an ATM!
Signals of a Bullish Future
The migration of assets away from exchanges is often a prelude to price appreciation, suggesting that traders are not inclined to sell at current values. Instead, many are opting for re-staking their ETH, bolstering confidence in the network’s future stability.
Withdrawal Trends from Major Exchanges
Several leading crypto exchanges, including Binance, Bitfinex, and Kraken, supported the Shapella upgrade and have since seen a notable outflow of ETH from their wallets. This exodus complements reports indicating that the amount of ETH being staked has outstripped withdrawals.
What’s Next for ETH?
As of recent estimates, less than 1% of staked ETH is anticipated to be sold, indicating a solid belief in Ethereum’s potential. With all these factors at play, it seems that Ethereum enthusiasts believe they’re sitting on a golden ticket.
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