Number of Ethereum on exchanges approaches its all-time low
Analysts see this as a sign of a future bull market
26.05.2023 - 16:00
3245
2 min
0
The number of ether (ETH) on exchanges has hit a low not seen since July 2016 as staking saps up available ether.
Data from Glassnode shows that as of Thursday, 14.85% of all ether was held in wallets owned by centralized exchanges. The market hasn’t seen a level this low since ether was in its infancy during the summer of 2016.
The balance held on centralized exchanges has nearly halved in three years. (Glassnode) (Glassnode)
In contrast, during the bull market of 2021, the exchange balance was around 25-26%. Typically low exchange balances are a bullish sign as it means the supply of ether available for purchase is limited, thus, it puts pressure on prices to increase.
In the last few weeks, staking's growing popularity has helped soak up supply from the market.
The introduction of the Shapella upgrade to the Ethereum network has triggered a surge in ether staking, with over 4.4 million additional coins deposited since the upgrade, as large ether holders increasingly opt for generating passive income rather than liquidating their assets.
"This trend is anticipated to persist, particularly considering that deflationary forces are expected to propel the price of Ether significantly," analysts at Binfinex previously shared with CoinDesk. "Prior to this upgrade, potential stakeholders may have been deterred from staking their ether tokens due to concerns about their funds being locked for an unacceptably long duration."
All this comes as crypto trading volumes decline by double digits.
Binance, the world's largest cryptocurrency exchange, experienced a 48% decrease in spot trading volume for the second consecutive month in April, reaching $287 billion - the second-lowest since 2021 - with its market share also reducing to 46%, reflecting a broader 40% industry-wide decline due to macroeconomic uncertainties and U.S. bank collapses.
This material is taken from the website https://www.coindesk.com.
Useful material?
Telegram 
Twitter Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$97 752
BTC
+0.33%
-
Ethereum
$3 288.8
ETH
-1.77%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.42
XRP
+25.4%
-
Dogecoin
$0.396205
DOGE
+2.17%
-
Cardano
$0.893067
ADA
+12.05%
-
Bitcoin Cash
$475.02
BCH
-3.59%
-
Polkadot
$6.06
DOT
+2.49%
-
Stellar XLM
$0.288906
XLM
+19.41%
-
Litecoin
$88.62
LTC
-1.15%