Ethereum (ETH) Supply On Crypto Exchanges Down By 37% After Merge
Ethereum (ETH) is only behind Bitcoin when it comes to market capitalization. Just a few months ago, ETH went through the merge update, which changed how the network operates.
But after the merge update, the supply of Ethereum on the exchanges continues to decline if we look at the data from the last 6 months. To be more precise, the supply is down by 37% if we calculate it from the day when the Merge went live.
ETH Reserves On Exchanges Continue To Decline
According to the data from Santiment, the on-chain analysis reveals that the ETH tokens available on the exchanges continue to decline.
In fact, the supply of ETH on the exchanges is already down by 37% after the merge update. According to experts, this decline in the supply of ETH is a bullish sign as less amount of ETH is available or trading.
Before the Merge update, around 19.12 million ETH were available on the exchanges. The total value of these ETH was around $31.3 billion.
But after the update, only 13.36 million ETH are available on the exchanges. As for their value in USD, it was around $19.7 billion in February.
So whether we look at the dollar value or the number of available ETHs on exchanges, both are on a decline for several months now!
According to experts, the reason behind this is the movement of ETH into self-custody. Especially with the new Shanghai upgrade about to be released, many traders are now preferring to stake their ETH holdings.
The supposed Shanghai update will be released in March and will allow a lot of improvements in the ETH network. In addition, the update will also enable the stakes to withdraw their holdings via the Beacon Chain.
For now, around 15% of the ETH's total supply is staked on a particular chain known as Beacon Chain. If we look at its value in dollar terms, it is somewhere around $25 billion based on current prices.
So as soon as the Shanghai hard fork goes live, all of this amount will become liquid once again!