Categories: Crypto NewsMenafn

Staked ETH On Steady Course To Surpass Exchange Balances

Summary:

  • Data from Blockchain Intelligence startup Nansen shows a steady increase in the number of staked ETH.
  • So far, users and entities have locked over 22 million coins which amount to about 18% of the token’s supply.
  • At the same time, balances in crypto exchanges are declining and now sit below 30 million tokens.
  • Analysts say the Shapella upgrade eliminated concerns around withdrawals and triggered a boom in locked tokens since stakers can earn rewards as opposed to just holding their coins.

The number of staked ETH continues to increase following the release of Shapella which enabled withdrawals for locked coins on Ethereum’s Beacon chain.

Following the Merge – Ethereum’s massive technological transition from proof-of-work to proof-of-stake – proponents were concerned about withdrawal functionality and possible selling pressure on the market.

Both concerns were rendered non-events, said Nansen’s Martin Lee as Shapella galvanized users and entities alike to stake more tokens. 

At press time, the number of staked coins crossed 22 million tokens. This amounts to around 18% of the available supply. The Merge also slashed emissions meaning that fewer tokens are released per block as rewards, taking ETH into a deflationary state.

ETH On Exchanges

At the time when staked tokens continue on the upswing, token balances on crypto exchanges have steadily declined. Balances in crypto exchanges have dropped below 30 million, per Nansen data.

One reason for this could be that entities are more likely to stake their token now that withdrawals are enabled rather than simply hodl the asset. 

Analysts opine that the staking incentive is greater now since withdrawals are possible and stakers can earn yield or rewards for locking their tokens. In contrast, holding the token on crypto exchanges earns no yield.

ETH on Exchanges VS Locked for Staking by Nansen

Following lawsuits from the U.S. Securities and Exchange Commission against Binance and Coinbase, crypto prices fell across the board. Traders were able to scoop up tokens around $1,740 a pop during trading hours on Monday.

ETH/USDT by TradingView
Evelyn

Recent Posts

XRP encountered liquidation? Ripplecoin Mining launched XRP cloud mining contracts to help holders obtain stable daily income

Despite the increased market volatility, Ripplecoin Mining uses AI intelligent computing power system and flexible…

21 hours ago

XRP Popularity Surges: SunnyMining Launches High-Yield Cloud Mining Plans to Turn XRP Holdings into Daily Income

Los Angeles, California, 25th July 2025, ZEX PR WIRE, XRP is rapidly evolving from a payment-focused token…

21 hours ago

Are You Still Envious of Others Who “Make Money by Holding Coins”? The Biggest Winner This Year May Be XRP Holders

Los Angeles, California, 25th July 2025, ZEX PR WIRE, As XRP continues to lead the crypto market,…

21 hours ago

SHHEIKH Token Soars 60% in two weeks: Over $2.8M raised. The Next BTC or SOL in the Making?

SHHEIKH, the world’s first AI-powered real estate tokenization ecosystem, has stunned early investors with a…

2 days ago

Ajman Bank Reports AED 266 Million in H1 2025 Profit Before Tax, Marking 14% Growth Driven by Core Performance and Operational Efficiency

Ajman, UAE, 24th July 2025, His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince…

2 days ago

CryptoBigBox.com: A Clean, No-Gimmicks Source for People Who Actually Use Crypto

Dubai, UAE, 24th July 2025, ZEX PR WIRE, Most websites talking about crypto have one…

2 days ago