Ethereum is entering an intriguing phase despite weaker price performance. A record amount of ETH is flowing off exchanges, while staking continues to grow and long-term holders are not abandoning their positions yet. The market is thus observing a disconnect between short-term price pressure and on-chain data suggesting continued investor confidence in the future of the second-largest cryptocurrency.
You might also like: RWA cryptocurrencies
Exchanges hold the lowest amount of ETH in history
According to data from CryptoQuant, Ethereum reserves on centralized exchanges have dropped to 14.5 million ETH, representing a new all-time low. Over the past twelve months, investors have withdrawn more than 6.5 million ETH from exchanges.
Such a development is often perceived as a signal of long-term confidence. Coins stored off exchanges are not ready for immediate sale, and their transfer to private wallets or staking can reduce the available supply on the market.
Read more: Tickmill broker review
Staking grows while price remains under pressure
While the amount of ETH on exchanges is declining, the volume of Ethereum involved in staking continues to grow. Locked ETH reached a new record of around 39.39 million ETH, with millions more coins waiting in the validator entry queue.
However, Ethereum’s price has not yet confirmed this positive on-chain picture. ETH is trading under pressure, and capital outflows from spot ETF funds indicate a more cautious sentiment among institutional investors. Nevertheless, according to BITmarkets, it remains important to note that long-term holders are not abandoning their positions yet.
Don’t miss: FX Junction
