Ethereum’s volume on centralized exchanges has dropped to its lowest level in five years, according to Glassnode data.
According to the data, there are only 17.882 million ETH on centralized exchanges, around 14% of the network’s total supply. DeFi Protocol Velvet Capital noted that this low was last seen during the early days of the blockchain in 2016.
Declining Exchange Balance Indicates Bullish Sentiments
Since the ETH exchange balance peaked at over 30 million in 2020, the numbers have gradually declined following the increased focus on self-custody due to FTX’s collapse.
However, recent events suggest that the balance on exchanges should be growing. For context, the Shanghai upgrade recently enabled the withdrawal of staked ETH, while the liquid staking protocol Lido also allowed its users to redeem their stETH for ETH.
But all these factors did not increase ETH flow to…
