With only 10.31% of the total ETH available, the supply of Ethereum on exchanges is at its lowest level since 2015. 90% of the ETH in circulation is held by organisations in charge of their own wallets, driven by worries about exchange security and the demand for investors to have complete control over their assets. Because there isn’t a lot of ETH available on exchanges, if there were to be strong market demand, the price of the cryptocurrency would probably increase. The supply of Ethereum has decreased by 66,000 ETH in the 180 days since the network’s merge upgrade, indicating a growing deflationary trend. After the London hard fork, transactions started burning ETH after the implementation of Ethereum Improvement Proposal (EIP) 1559.
Ethereum staking has been viewed as a source of income for both cryptocurrency owners and exchanges; in the fourth quarter of last year, Coinbase reported revenue of more than $200 million. Ethereum’s Shanghai upgrade is one step closer to being activated, allowing validators to withdraw their staked ether and rewards earned from adding or approving blocks.
