The number of Ethereum (ETH) on exchanges has hit a low not seen since July 2016 with the staking of existing Ethereum.
Ethereum (ETH) Balance on Exchanges Approaches All-Time Low
Data from Glassnode shows that as of today, 14.85% of all Ethereums are held in wallets owned by centralized exchanges. The market has not seen such a low since Ethereum was in its infancy in the summer of 2016.
In contrast, the stock market balance was around 25-26% during the bull market of 2021. Typically low exchange balances can be a bullish sign as it means the supply of Ethereum that can be purchased is limited.
Over the past few weeks, the growing popularity of staking has helped absorb the supply in the market.
The introduction of the Shapella upgrade to the Ethereum network has triggered an increase in Ethereum staking, with more than 4.4 million additional coins deposited since the upgrade, as large Ethereum holders are increasingly choosing to generate passive income over cashing out their holdings.
*Not investment advice.
