Ethereum Staking Surges as ETH on Exchanges Declines
The amount of Ethereum staked on the network is now almost twice the amount held on centralized exchanges. Despite this, the strengthening Ethereum staking narrative is not reflected in asset prices, which continue to remain weakened. Here are the key points:
1. Decrease in ETH on exchanges: Recent charts indicate that the staking balance of Ethereum is over 28 million ETH, while the exchange balance has fallen to 14.7 million ETH. This means that there is almost twice as much ETH being staked compared to what’s available for sale on exchanges.
2. Overall declining trend: Glassnode data shows a consistent decline in ETH on exchanges since mid-2020, with a decrease of over 50% in the past three years.
3. Significant amount staked: The Ultrasound.Money portal reports a total of 24.3 million ETH staked, which accounts for over 20% of the total supply. Nansen reports a slightly higher figure at 26.1 million ETH.
4. Top ETH stakers: Liquid staking platform Lido holds the largest share, with around a third of the total stake. Coinbase, the largest centralized exchange staking provider, holds 9% of the total.
Despite the bullish fundamental property of Ethereum, its prices remain depressed. ETH is currently trading flat at $1,650, dropping 12% over the past month and remaining 66% down from its peak in November 2021.
Hot Take:
While the amount of Ethereum being staked continues to surge, the lack of price reflection raises questions about the factors influencing the cryptocurrency market. It’s an intriguing phenomenon where the network’s strength doesn’t necessarily translate to immediate price gains. This discrepancy invites further exploration into the dynamics between staking and asset prices in the crypto space.
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