Feb 16, 2023
37% Less ETH on Exchanges Since Ethereum Merge
As the Ethereum network undergoes a major upgrade from proof-of-work (PoW) to proof-of-stake (PoS), the amount of available ETH sitting on exchanges continues to drop. Crypto analytics firm Santiment has reported that since the Merge, there is 37% less ETH on exchanges. This is seen as a positive sign, as there is less ETH available to trade or sell.
In September before the Merge, there was a total of 19.12 million ETH, worth $31.3 billion, on exchanges. The number has now declined to 13.36 million ETH, worth $19.7 billion, in the second week of February. It appears that a lot of the ETH supply is being moved into self-custody, while many traders are also preparing for the upcoming Shanghai upgrade in March by staking their ETH. Currently, 16 million ETH, or 14% of the total supply, is staked on the Beacon Chain, amounting to approximately $25 billion at current prices.
In addition to the decrease in ETH supply held on exchanges, the overall market supply has also declined since Ethereum turned deflationary post-London upgrade. This is due to a fee-burning mechanism introduced through Ethereum Improvement Proposal (EIP)-1559. Since the London upgrade in August 2021, a total of 2.9 million ETH has been burned, estimated to be worth $4.5 billion in today’s value.
The Merge and the upcoming Shanghai upgrade are seen as positive developments for the Ethereum network, as they are expected to bring in more users and create more opportunities for NFT promotion and marketing. As NFTs become increasingly popular, more and more businesses are looking to use NFTs as a way to promote their products and services. As a result, a growing number of NFT marketing agencies are offering services such as Twitter NFT marketing and NFT promotion. These agencies are helping businesses to create and sell NFTs and use them to engage with their customers and build brand awareness.
The Merge and the upcoming Shanghai upgrade are expected to further drive the growth of the web3 space and create more opportunities for businesses to use NFTs to promote their products and services. With the amount of ETH supply held on exchanges decreasing, it is likely that the Ethereum network will continue to become more secure and reliable, which will in turn encourage more businesses to explore the potential of 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.
