On-chain analytics provider Glassnode delved into Ethereum metrics in its weekly insights report, noting that the recent rise in Ethereum prices was supported by a steady stream of outbound ETH offerings from exchanges.
“ETH balances on exchanges have now dropped, reaching a historic low of 13% of current supply this week, equivalent to 15.3 million ETH.”
exodus to staking
When Ethereum leaves cryptocurrency exchanges centralized, analysts consider the move a bullish signal. Assets may be being transferred to custody or cold portfolios or, more likely, invested in DeFi or staking.
On the other hand, large inflows on exchanges are seen as bearish as investors may be starting to prepare for liquidation.
Glassnode also reported that Open Interest (OI) in ETH options markets has also expanded in recent weeks. Open interest in derivatives markets reached $3.9 billion this week, about 40% below the all-time high set in May.
Open Interest refers to the total number of outstanding derivative contracts that have not been settled. Data indicated that a lot of Ethereum is starting to flow into staking services, such as those provided by Lido.
“A fair amount of ETH is finding its way into the Ethereum 2.0 staking contract, preparing for the network’s transfer from Proof of Work to Proof of Participation.”
Lido’s deposits continued to increase, the report added, reaching 12% of the total offer staking last week, or 815,000 ETH. At current prices, Lido’s deposits are worth $2.44 billion, which is good news for holders of its governance token, LDO, which in turn increased 30% on the day.
New brand of staking on ETH.20
The amount of ETH staking directly into the Beacon Chain deposit contract is just under seven million, according to the ETH 2.0 launch pad. This represents nearly 6% of all supply and is valued at $21 billion at current prices.
Block explorer Beaconcha.in reports a slightly lower figure of 6.77 million ETH in staking, but it’s still a record. There are 211,663 validators on the network and current yields are 5.9% per year at ETH.
Ethereum prices had just recovered $3,000 at the time of publication. ETH retreats 2.5% in the day, but rises 10% in the last fortnight and 64% in the month.
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