Feb 16, 2023
37% Less ETH on Exchanges Post-Merge
Ether (ETH), the second largest cryptocurrency by market capitalization, has seen a steady decrease in exchange supply since the Merge in September 2022. According to crypto analytics firm Santiment, the amount of ETH available on exchanges has dropped by 37% since the Merge.
At the time of the Merge, there was a total of 19.12 million ETH, worth $31.3 billion, on exchanges. This number has since declined to 13.36 million ETH, worth $19.7 billion, in the second week of February.
The majority of ETH supply is being moved into self-custody, with many traders also opting to stake their holdings in preparation for the upcoming Shanghai hard fork in March. Currently, 16 million ETH, or 14% of the total supply, is staked on the Beacon Chain, amounting to approximately $25 billion at current prices.
The Shanghai hard fork will bring a number of improvements to the Ethereum network and will allow stakers and validators to withdraw their holdings from the Beacon Chain.
In addition to the declining supply of ETH on exchanges, ETH’s overall market supply has also decreased since the London upgrade, which introduced a fee-burning mechanism through Ethereum Improvement Proposal (EIP)-1559. A total of 2.9 million ETH has been burned since the London upgrade in August 2021, estimated to be worth $4.5 billion in today’s value.
The deflationary model of ETH has made it an attractive investment for those seeking to capitalize on the growing NFT market. NFT marketing agencies and web3 agencies are increasingly turning to ETH to facilitate the sale of NFTs, as well as for promotion and marketing on social media platforms such as Twitter.
ETH is also being used to power innovative projects within the web3 space. Projects such as decentralized finance protocols, DeFi, have seen tremendous growth since the Merge, with ETH being the primary currency used for transactions.
As the Ethereum network continues to evolve, the demand for ETH is expected to increase, resulting in a further decrease in exchange supply. This is a positive sign for ETH investors, as it indicates that the demand for the cryptocurrency is growing.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.