Feb 16, 2023
Ethereum Supply on Exchanges Continues to Drop 37% Post-Merge
The Ethereum network underwent a major upgrade in September 2022, transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) network in an event known as the Merge. This upgrade has had a significant impact on the second-largest cryptocurrency by market capitalization, Ether (ETH), as it has seen a constant decline in exchange supply over the past six months.
According to on-chain data shared by crypto analytics firm Santiment, the amount of available ETH sitting on exchanges has dropped by 37% since the Merge. This figure was 19.12 million ETH, worth $31.3 billion, in September, and has since declined to 13.36 million ETH, worth $19.7 billion, in the second week of February.
A major factor behind this decline is the movement of ETH into self-custody. Additionally, with the upcoming Shanghai hard fork just around the corner, many traders are opting to stake their ETH on the Beacon Chain. Currently, 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 sizable amount that will gradually become liquid after the Shanghai hard fork.
The deflationary model that came with the London upgrade in August 2021 has also had an effect on the overall market supply of ETH. A total of 2.9 million ETH has been burned since the London upgrade, estimated to be worth $4.5 billion in today’s value.
The decline in ETH supply on exchanges and the deflationary model of the Ethereum network have made it an attractive option for investors, especially those looking to get involved in the web3 space. NFTs and other crypto-based assets have become increasingly popular, and ETH is the perfect currency for buying, selling, and promoting these digital assets.
NFTs are becoming more and more visible on social media platforms like Twitter, and many companies are turning to NFT promotion services and NFT marketing agencies to help them reach their target audience. These services specialize in helping companies create and launch their own NFTs, as well as promote them through various channels.
With the Ethereum network becoming more advanced and the deflationary model providing investors with security, ETH is becoming an increasingly attractive option for those looking to get involved in the web3 space. It is the perfect currency for buying, selling, and promoting digital assets, and its deflationary model makes it an even more attractive option for investors.
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.
