Ethereum Balance on Exchanges Drops to 5-Year Low

The amount of Ethereum held on centralized exchanges has hit its lowest level in five years, according to Glassnode data. The data reveals that just 17.882 million ETH, which represents approximately 14% of the network’s total supply, are held on centralized exchanges.

The last time the exchange balance figures were this low was back in 2016 during the early days of the blockchain.

Declining Exchange Balance Indicates Bullish Sentiments

The exchange balances of ETH have been declining gradually since the peak of over 30 million seen in 2020, resulting from an increased focus on self-custody following the collapse of FTX.

However, recent events that should have seen an increase in the balance on exchanges have not triggered a sell-off or resulted in an influx of ETH flow to exchanges. Instead, it indicates the general bullish sentiment surrounding this digital asset.

Ethereum Staking Deposits Reach ATH

Glassnode data reveals that there are currently 22.2 million ETH deposits locked on the beacon chain, which represents a new all-time high. This means that the amount of ETH locked up in staking is now greater than the number held on centralized exchanges.

Since the Shanghai upgrade, which enabled the withdrawal of staked ETH, there have been more deposits than withdrawals. This spike in Ethereum staking deposits happened because investors were going for passive income. Although initially centralized platforms like Celsius and others caused a decline in the amount of staked ETH due to their withdrawal, this didn’t last long as deposits began to outpace withdrawals. Consequently, the total value of assets locked on liquid staking protocols such as Lido has soared.

ETH Trades Flat

ETH is now trading at $1,829, up by 0.83% in the last 24 hours, according to the Bitrabo data. In early May, ETH reached over $2,000 before dropping to its current levels, mostly trading above $1,800 since then.