- Ethereum exchange reserves hit a new low for the first time in over two years.
- The crypto analyst said the number dropped from 26 million from to less than 21 million
According to a crypto expert, Ethereum exchange reserves have now hit a new low for the first time in over two years.
The crypto analyst said the number dropped from 26 million from June last year to less than 21 million by July 2021. This is related to the rise in the price of Ethereum.
Over the months, as the price of ETH soared, the exchange reserves kept going down. Of note, Exchange reserves are the supply for selling, altcoins purchasing, and trading on exchanges.
The crypto analyst said that the release of ETH 2.0 pushed investors to stake their coins and get returns. This is due to Ethereum moving from proof-of-work to proof-of-stake. Besides, it means that the network won’t need validators. Therefore, people could conveniently run their nodes.
As per the Ethereum team, the method is meant to be safer since you have access to your private keys while staking. Moreover, it means that users can now take their coins out of exchanges and put them in their private wallets.
The team also added that as long as users have enough coins, they can set up their nodes and can stake their ETH on their terms. This leaves only the users with a lesser amount of coins to keep their coins on exchanges.
More so, the expert said the exchanges have lost over 5 million coins from their reserves in a year. And it is assumed that this amount will likely continue as more investors get into staking.
Ethereum 2.0 is about to make a short history as it nears 6 million staked Ether (ETH). As per the Ethereum Launchpad, Ethereum 2.0 staking portal shows about 5.9 million staked Ether. And almost 180,000 validators powering the blockchain.