Ethereum's Crypto Stock Ether (ETH) on Centralized Exchanges Hits 5-Year LowCryptocurrency 0 replies 0 likes 0 votes 144 views
The amount of Ether (ETH) stored on centralized crypto exchanges has reached a five-year low, with only 17.8 million ETH currently on exchanges, a level not seen since July 2016. This represents less than 15% of the total token supply on the Ethereum network.
This trend is considered bullish as it indicates a limited supply of ETH available for purchase. The decreasing ETH balances on exchanges coincide with a rise in staking, with over 21.3 million ETH staked since the beginning of May.
The decline in ETH balances on exchanges began in September 2022, accelerated by the bankruptcy of FTX, which shook investor confidence in centralized custodians. However, the growing staking activity, triggered by the Shapella upgrade, has contributed to the decrease in token supply.
With limited ETH available on exchanges and increasing staking participation, Ethereum stakeholders demonstrate long-term commitment and confidence. This trend sets the stage for a potentially positive price movement for Ether in the future.