Only 9% of all Ethereum is on exchanges, data points out

According to the law of supply and demand, when the demand for a certain asset is large, but its supply is low, there is a tendency for the price to rise. And, according to recent data, this is what can happen with Ethereum. After all, only 9% of the ETH supply is currently on exchanges.

According to data released by OKLink, the amount of Ethereum available at brokerages has dropped to a record 11 million ETH. This corresponds to exactly 9.4% of the total supply.

It is, therefore, the lowest value since February 25, 2018. At the time, the lowest point of 9 million ETH was reached on the exchanges.

According to OKLink, since May 2020, when there were 22 million Ether on the platforms, stocks have started to steadily drop.

At that time, the big boom decentralized finance (DeFi). The total of ETH blocked in the protocols rose from 2.7 million in May 2020 to 9.47 million today, according to DeFi Pulse.

Ethereum (ETH)

Ethereum 2.0

Furthermore, data also show that ETH outflows from exchanges increased due to the transition to Ethereum 2.0.

According to Etherscan, there are over 6.61 million ETH locked in Ethereum 2.0 contracts. This percentage corresponds to 5.65% of the supply.

Considering Ethereum’s current quote, the value is approximately US$21 billion. That is, more than three times the amount of gold reserves held by the Central Bank of Brazil, estimated at US$ 6.87 billion.

The amount of money blocked in ETH 2.0, which is not yet in its final version, also exceeds the total reserves of nationals from countries such as El Salvador, Cuba, Nicaragua, Bolivia, Ecuador, Costa Rica, Honduras, Paraguay, Panama, Venezuela, Dominican Republic, among others, according to data from the World Bank.

Ethereum has been looking to implement the Ethereum 2.0 update whose main objective is to increase the transaction capacity of the network. In addition, it aims to reduce fees and make the network more sustainable.

To this end, Ethereum will change its consensus mechanism from Proof of Work (PoW) to Proof of Participation (PoS).

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