Throughout the month of June, there was a noticeable trend in Ethereum (ETH) withdrawals from exchanges, hinting at a shift in investor behavior towards holding their Ethereum off trading platforms. Despite the decline in exchange balances, there was a rise in the volume of staked ETH. This begs the question: What does this mean for Ethereum’s price movement?
Ethereum Withdrawals Seeing Uptick
The surge in Ethereum withdrawals from exchanges has not gone unnoticed, with data revealing that over 1 million ETH were transferred from exchanges to wallets over the past 30 days in June. This amounted to roughly $3.8 billion worth of withdrawals, demonstrating a significant 6.4% increase compared to the previous month of May. Additionally, there was a marked reduction in the amount of Ethereum held on exchanges.
Further insights from CryptoQuant emphasized this shift, indicating that in June, the quantity of ETH in exchange reserves stood at over 17 million. By the end of the 30-day period, this figure had decreased by 1 million ETH to reach a total of 16 million. Notably, at present, the reserve hovers around 16.6 million ETH.
The movement of investors away from exchanges towards staking activities possibly signifies their anticipation of growth in both spheres.
Ethereum Staking Progress
Significant developments have also unfolded in the staking arena within the Ethereum ecosystem. As the ETH supply on exchanges dwindled, a noticeable uptick in staking activity was observed.
According to data from Glassnode, there was a consistent uptrend in the total staked amount, indicating a preference among holders to earn passive income from their ETH holdings rather than selling them, thereby contributing to the network’s robustness.
The increasing frequency of staking transactions, exceeding 1.5 million, underscores a shift from having Ethereum readily available for sale on exchanges to securing it through staking protocols.
Additionally, insights from Dune Analytics unveiled that currently, over 33.2 million ETH are staked, representing nearly 28% of the total ETH supply.
In light of these developments, it is evident that investors continue to exhibit confidence in Ethereum’s future prospects, rather than resorting to impulsive sell-offs.
At the time of writing, Ethereum maintains its price momentum, attracting buyers at $3,422 following a marginal 0.57% dip in the last 24 hours.
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Disclaimer: The content presented in this article is not construed as investment advice. Investors are advised to acknowledge the high volatility and associated risks of cryptocurrencies and to conduct their own due diligence.
