More ether has been staked than is held on centralized exchanges

According to data, there are only 17.882 million ether on centralized exchanges, which is about 14 percent of the total supply. The DeFi Protocol Velvet Capital noted that such a low amount was last seen during the early days of blockchain in 2016.

The decrease in amount on exchanges indicates bullish sentiment

Since the amount of ether on exchanges peaked at over 30 million in 2020, the figures have gradually decreased following an increased focus on self-custody due to the collapse of FTX.

However, recent events suggest that the balance on exchanges should grow. For context, the Shapella upgrade recently enabled the withdrawal of ether staked, while the liquid staking protocol Lido also allowed its users to convert their stETH token for ETH.

However, all these factors have not increased the flow of ether on exchanges nor triggered a sell-off, indicating a bullish sentiment surrounding the digital asset.

Ethereum staking deposits reach a peak

Ether deposits for staking have risen to a new all-time high of 22.2 million, according to Glassnode data. This means that currently more ether is staked than is held on centralized exchanges.

On May 22, blockchain analytics firm Arkham Intelligence reported that there were significantly more deposits than withdrawals since the Shapella upgrade was enabled on April 12, with around $7.7 billion in inflows.

Although daily deposits vary, it is clear that there has been an increase in ether staking deposits since the Shapella upgrade. Velvet Capital confirmed this, stating that the increased figures have attracted investors seeking passive income.

The initial wave of withdrawals from centralized platforms like Celsius and others caused a decline in the amount of staking ether. However, this soon changed as deposits began to outpace withdrawals.

According to CoinGecko data, ether has risen by 0.83 percent to $1,829 in the last 24 hours.

Since withdrawals from staking have been enabled, ether peaked at over $2,000 in early May before falling to the current level. Since then, the second-largest cryptocurrency has mostly traded around $1,800.