Categories: FintTechMenafn

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
Ryan Helton

A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

Recent Posts

Zcash Surges on Privacy Bets

Zcash (ZEC) has erupted past key resistance levels this week, driven by surging derivatives flows…

15 hours ago

Permute Surpasses $1M in Transaction Volume in One Month Since Launch

Bangalore, India, 2nd October 2025, ZEX PR WIRE, Permute, an accessible Bitcoin bridge platform, announced…

1 day ago

Codego Launches Whitelabel Devices Bringing Tokens Into Daily Life

Milan, Italy, 2nd October 2025, ZEX PR WIRE, Codego Group recently disclosed that its Whitelabel…

1 day ago

QMMM SEC Trading Suspension After Crypto Pivot

The U.S. Securities and Exchange Commission has suspended trading in QMMM Holdings Ltd. after weeks…

2 days ago

From Broken Models to Aligned Trading: Afterprime’s Pay-to-Trade Shift

Brokers profit when clients lose — Afterprime 2.0 ends that conflict with the world’s first…

2 days ago

Altseason Watch As Altcoin Share Surges On Binance

Bitcoin’s market share fell to about 57 percent in September, according to Binance Research’s Monthly…

3 days ago