- Ethereum supply on exchanges continued to decline in the new year.
- Looking at the number of daily stakes, it appears that once assets are taken out of the exchange, they are not being re-introduced.
In recent weeks, Ethereum (ETH) has seen its supply decline on exchanges. How has this affected retainer numbers?
Exchanges continue to reduce Ethereum supply.
AMBCrypto’s analysis of Ethereum exchange supply shows a gradual decline starting January 1, but remains above 10 million at press time. As of the beginning of the year, exchange supply amounted to approximately 10.52 million.
Still, at the time of writing this, the number has decreased to around 10.45 million. This is a decrease from over 8% to around 7.9%.
Source: Santiment
A decrease in supply on exchanges indicates that holders are withdrawing their assets from these platforms at the time of reporting. This may increase the scarcity of these assets, depending on their destination.
Is more Ethereum flowing into stakes?
AMBCrypto found that Ethereum’s staking chart for Glassnode showed a steady increase to over 35.7 million stakes at the time of this writing.
While overall growth may suggest that ETH withdrawn from exchanges is being staked, a closer look at the number of new daily staking challenges this assumption.
After December 30, 2022, the chart shows new deposits declining, falling below 2,000. At the time of this writing, that number has fallen to less than 1,000.
This trend suggests that not all ETH withdrawn from exchanges has been staked in its entirety, at least not over the current period.
Source: Glassnode
The number of Ethereum holders continues to increase.
AMBCrypto also found that Ethereum holders have shown continued growth in recent months, reaching close to 112 million at press time. The chart shows an upward trend, confirming continued expansion.
How much is 1,10,100 ETH worth today?
This means that the number of wallets acquiring and holding ETH continues to increase despite the decline in exchange supply. Additionally, supply outside the exchanges suggested that the decline in supply may be due to accumulation.
As of this writing, external supply to exchanges is over 120 million.
Source: Santiment