The number of ether (ETH) on exchanges has hit a low not seen since July 2016 as staking saps up available ether.
Data from Glassnode shows that as of Thursday, 14.85% of all ether was held in wallets owned by centralized exchanges. The market hasn’t seen a level this low since ether was in its infancy during the summer of 2016.
The balance held on centralized exchanges has nearly halved in three years. (Glassnode) (Glassnode)
In contrast, during the bull market of 2021, the exchange balance was around 25-26%. Typically low exchange balances are a bullish sign as it means the supply of ether available for purchase is limited, thus, it puts pressure on prices to increase.
In the last few weeks, staking’s growing popularity has helped
Keep reading this article on Coinbase.com.