Data: ETH Stored On Centralized Exchanges Has Reached 5-Year Low

Over $21.3 million worth of Ether has been invested.

The amount of Ether on centralized crypto platforms is at its lowest level in five years. Glassnode’s most recent data shows that there are 17.8 million ETH on exchanges right now. This is a number that hasn’t been seen since July 2016.

This number indicates less than 15% of the total number of tokens on the Ethereum network. During the bull market in 2021, the exchange rate was around 26%, which gives you an idea of how things are going.

Most of the time, this is a positive sign because it means there aren’t many of the crypto-assets available to buy. Also, there isn’t a lot of ETH on CEXs that can be sold right away.

In September 2022, the amount of ETH on platforms started to go down. After FTX went bankrupt two months later, investors’ faith in centralized managers was shaken even more, which made the drop even bigger.

But this month, ETH balances on platforms are going down at the same time that staking is going up. Since the beginning of May, the number of staked ETH has gone from 19.3 million before the Shapella update to more than 21.3 million.

After three years, validators could take their claimed Ether out of the Beacon Chain after the April 12 update. Notably, more and more validators are re-staking their ETH. This is causing the amount of the token to go down, which is good for its price.

The influx seems to have been caused by big staking service providers and investors who put their rewards back into the market after withdrawing them.