Share this article
Ether Balance on Exchanges Nears All-Time Low
The drop comes as the number of staked ether has surged.
By Sam Reynolds
Updated Jun 1, 2023, 4:02 p.m. Published May 26, 2023, 8:25 a.m.
The number of ether (ETH) on exchanges has hit a low not seen since July 2016 as staking saps up available ether.
Data from Glassnode shows that as of Thursday, 14.85% of all ether was held in wallets owned by centralized exchanges. The market hasn’t seen a level this low since ether was in its infancy during the summer of 2016.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In contrast, during the bull market of 2021, the exchange balance was around 25-26%. Typically low exchange balances are a bullish sign as it means the supply of ether available for purchase is limited, thus, it puts pressure on prices to increase.
In the last few weeks, staking's growing popularity has helped soak up supply from the market.
The introduction of the Shapella upgrade to the Ethereum network has triggered a surge in ether staking, with over 4.4 million additional coins deposited since the upgrade, as large ether holders increasingly opt for generating passive income rather than liquidating their assets.
"This trend is anticipated to persist, particularly considering that deflationary forces are expected to propel the price of Ether significantly," analysts at Binfinex previously shared with CoinDesk. "Prior to this upgrade, potential stakeholders may have been deterred from staking their ether tokens due to concerns about their funds being locked for an unacceptably long duration."
All this comes as crypto trading volumes decline by double digits.
Binance, the world's largest cryptocurrency exchange, experienced a 48% decrease in spot trading volume for the second consecutive month in April, reaching $287 billion - the second-lowest since 2021 - with its market share also reducing to 46%, reflecting a broader 40% industry-wide decline due to macroeconomic uncertainties and U.S. bank collapses.
Ether is currently trading for $1,816, up 2%, according to CoinDesk market data.
This article was written and edited by CoinDesk journalists with the sole purpose of informing the reader with accurate information. If you click on a link from Glassnode, CoinDesk may earn a commission. For more, see our Ethics Policy.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
Top Stories
