Ethereum Exchange Balances Almost in Record Lows: Report

The trend of Ethereum diminishing from the total supply on centralized platforms, which Glassnode quantifies as 14.85%, is the lowest it’s been since July 2016.

This has occurred in the midst of 2021’s bull market, when Ethereum’s proportions reached 25-26%.

Analysts say this is resulting from the growth of staking; since April 13, after the Shapella hard fork was implemented, over 3 million ETH have been transferred to the deposit contract, according to Dune Analytics, which show that the staked portion of Ethereum has risen to 17.77%.

Bitfinex analysts believe that this trend will continue due to deflationary forces increasing Ethereum’s value.

Lido further amplified staking’s influence by launching the second version of its protocol on May 15th, allowing Ethereum to be withdrawn from staking.