The amount of Ethereum (ETH) stored with the crypto exchange has dropped to its lowest level since September 2018, signaling traders’ willingness to hold the token in hopes of a price increase in 2022.
In particular, nearly 550,000 ETH – valued at about $1.61 billion – flows out of the centralized trading platform every year. followGlassnode data, by massive outflow, has reduced Ether’s net balance to 21.72 million ETH, down from a record 31.68 million ETH in June 2020.
Biggest Weekly ETH Outflow Since October 2021
30% of all Ether withdrawals from the exchanges we saw in 2022 appeared earlier this week, according to data from IntoTheBlock. showIt is seen in detail that more than 180,000 ETH flowed from the crypto trading platform on March 15th, bringing the weekly outflow value to slightly over $500 million as of March 18.
The data from Chainalysis also showed similar characteristics.revealThat Ether tokens flowing from exchanges this week averaged around 120,000 units per day, signaling a bull market.
The Ethereum Supply Crisis Is Creeping
This week’s surge in Ether withdrawals is close to 190,000 ETH moving to Lido’s “stETH liquid stakin” pool, according to IntoTheBlock.
Lido is a noncustodial stake service that allows users to overcome challenges associated with stakes on Ethereum 2.0 Beacon Chain Yes, including a minimum stake requirement of 32 ETH. Lido also offers a solution to capital efficiency by issuing stETH, the token version of the staked ETH.
The past 30 days have shown that Ether holders have added more than 1 million ETH to their Ethereum 2.0 contracts, and as the protocol prepares to transition, Following a “Merge” earlier this week on the Kiln testnet network, the likelihood that ETH tokens will encounter active supply issues has increased.
Lol. No one told anon that there’s going to be a liquidity squeeze in newly minted Ether in a few months. No newly minted Ether will enter circulation between the Merge (Juneish) and Shanghai (Decemberish). I’d text them but I don’t even have their number. You got it? Poor anon.
— superphiz.eth
(@superphiz) March 16, 2022
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