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 over the past six months. This is following the Ethereum network’s major upgrade back in September 2022, which moved the network from a proof-of-work (PoW) to a proof-of-stake (PoS) network. The upgrade was dubbed the Merge.
Crypto analytics firm Santiment has shared on-chain data which shows that the amount of available ETH sitting on exchanges has decreased since the Merge. This is a positive sign for the market, as it means there is less ETH available to trade or sell.
Before the Merge, there was a total of 19.12 million ETH, worth $31.3 billion, on exchanges. Now, the number has dwindled to 13.36 million ETH, worth $19.7 billion. This is a 37% decrease.
A major portion of the ETH supply is being moved into self-custody, while many traders also prefer staking with the upcoming Shanghai upgrade. This is scheduled for March and will integrate more improvement proposals for network enhancements and allow stakers and validators to withdraw their holdings from the Beacon Chain.
At the moment, 16 million ETH, or 14% of the total supply, is staked on the Beacon Chain, amounting to approximately $25 billion at current prices. This is a considerable sum which will gradually become liquid after the Shanghai hard fork.
Since the Ethereum network turned deflationary post-London upgrade, its overall market supply has also dropped. This is due to the fee-burning mechanism introduced through Ethereum Improvement Proposal (EIP)-1559. So far, 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 has led to a surge in NFT (non-fungible token) promotion and marketing, with many NFT projects looking to capitalize on the trend. Ethereum-based NFTs have seen a surge in popularity, with many projects looking to leverage NFT marketing and promotion to increase their visibility. This includes the use of Twitter NFT marketing, as well as the use of NFT marketing agencies and web3 agencies to help promote and sell NFTs.
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.
