Hey Inspired Analyst Family!
Have you heard the latest news about Ethereum?
The amount of Ethereum stored on centralized crypto exchanges has fallen to its lowest level for half a year!
Yes, you read that right, just 26.5 million ETH, valued at roughly $49 billion, resides on centralized exchanges.
But where has all this ETH gone?
In this newsletter, we'll dive into the details of this exciting development and explore why this is excellent news for the future of Ethereum.
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Where Has All the ETH Gone?
Since the beginning of the year, the amount of ETH on exchanges has declined by around 10%.
It all started when there was a massive withdrawal of Ethereum from exchanges in the wake of the FTX collapse in late 2022.
But again, where has all this ETH gone?
With so many yield opportunities available in the Ethereum ecosystem, leaving it sitting on an exchange makes little sense.
Self-custody and staking have been the destinations for a large chunk of the ETH leaving exchanges.
Ethereum Staking Breakdown
After the Shangai update, there was no appreciable increase in exchange inflow volume.
Therefore, there was no increase in selling pressure after withdrawals were enabled, as predicted in one of our earlier newsletters.
Following an initial surge of withdrawal requests, staking exits have now levelled off between 300 and 700 per day.
Lido currently has a market-dominant share of 33.5%, followed by Coinbase, which has an 11.5% staking provider share.
ETH Price Outlook
Despite the low sell-side pressure following Shapella, ETH prices have retreated in the shadow of their big brother BTC.
The asset touched $2,000 briefly over the weekend but resistance proved too strong.
ETH has declined 13.4% since its 2023 high and is down 62.2% from its all-time high. However, support currently lies just above $1,800 in the short-term time frame.
Conclusion
In conclusion, the decline of Ethereum on centralized exchanges is great news for the Ethereum ecosystem.
With more ETH moving to self-custody and staking, the network is becoming more decentralized, secure, and stable.
While the price of ETH may continue to fluctuate in the short term, the long-term outlook for Ethereum remains positive.
So, stay tuned for more exciting developments in the world of crypto!
That's it for now,
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- This is Zain from Team Inspired Analyst signing off!
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.