Sunday, June 4, 2023

Ether exchanges are nearing an all-time low

As the layer above ethereum (ETH) becomes available, the amount of tokens exchanged has hit its lowest level since July 2016.

Read this article in Spanish.

Data from Glassnode shows that as of Thursday 14.85% of all available ether was centralized on exchange networks. The market was not at such a low level that ether was taking its first steps in the summer of 2016.

The balance in the central exchanges is almost three and a half years. (Glassnode)

By contrast, in the 2011 bull market, the balance in exchange was around 25% to 26% in value. In general, low balances on exchanges are bullish signals, as it means that the supply of ether to buy is limited, thus putting pressure on prices to rise.

Follow us on CoinDesk in spanish.

In recent weeks, the growing popularity of staking has helped draw supply from the market.

The introduction of the Shapella upgrade to the Aereus network has resulted in an increase in ether tabulation, with more than 4.4 million additional coins deposited from it, as large holders increasingly choose to generate income. charges for liquidating goods.

“This trend is expected to continue, especially as deflationary forces are expected to significantly drive down the price of ether,” Bitfinex analysts told CoinDesk. “Prior to this update, powerful stakeholders can be locked away from locking screen standards out of concern that their funds would be locked up for a long period of time.”

All this as cryptocurrency trading volumes are posting double-digit declines.

Binance, the world’s largest cryptocurrency exchange, posted a 48% drop in trading volume for the second straight month of April, reaching $287 billion, the second lowest level since 2021. In addition, market share also went down 46%; reporting a broader 40% decline across the sector due to macroeconomic uncertainties and the US banking collapse.

Ether is now trading at $1,816, up 2%, according to CoinDesk trading data.

World Nation News Desk
World Nation News Desk
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