Ethereum Supply Shock: Exchange Reserves Go On Decreasing While ETH 2.0 Staking Contract Grows In Value
As pointed out by a CryptoQuant , ETH exchange reserves have been decreasing while the coins locked in the staking contract have been rising.The “all exchanges reserve” is an Ethereum indicator that highlights the total number of coins stored in wallets of all exchanges.
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The indicator's value looks to be decreasing while ETH 2.0 total value staked is moving up | Source:As the above graph shows, the Ethereum exchange reserves have been steadily heading downwards since quite some time now.
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This is creating a supply shock in the market. An increase in demand from big whales like institutional and retail investors now can blow the price up.In fact, on-chain data suggests institutional investors have already started getting involved in the crypto as 400k ETH exited the crypto exchange Coinbase a few days back.
By the way, the chart from before also includes the value currently staked in ETH 2.0. As this contract is seeing a steady increase in the number of coins being locked, it looks likely that some of the supply going off exchanges is going into this contract. This further backs the idea that investors are in Ethereum for the long term.ETH Price
At the time of writing, Ethereum’s price floats around $3.8k, up 5% in the last seven days. Over the past month, the crypto has gained 9% in value.
The below chart shows the trend in the value of the coin over the last five days.ETH's price has moved rather sideways in the last few days | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com