{"id":582706,"date":"2023-06-12T14:22:26","date_gmt":"2023-06-12T13:22:26","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=582706"},"modified":"2023-06-12T14:22:36","modified_gmt":"2023-06-12T13:22:36","slug":"staked-eth-to-surpass-exchange-balances","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/staked-eth-to-surpass-exchange-balances\/","title":{"rendered":"Staked ETH On Steady Course To Surpass Exchange Balances"},"content":{"rendered":"\n
Summary: <\/p>\n\n\n\n
The number of staked ETH continues to increase following the release of Shapella which enabled withdrawals for locked coins on Ethereum\u2019s Beacon chain.<\/p>\n\n\n\n
Following the Merge – Ethereum\u2019s massive technological transition from proof-of-work to proof-of-stake – proponents were concerned about withdrawal functionality and possible selling pressure on the market.<\/p>\n\n\n\n
Both concerns were rendered non-events, said Nansen\u2019s Martin Lee as Shapella galvanized users and entities alike to stake more tokens.\u00a0<\/p>\n\n\n\n
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<\/a> meaning that fewer tokens are released per block as rewards<\/a>, taking ETH into a deflationary state.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.\u00a0<\/p>\n\n\n\n Analysts opine that the staking incentive is greater now since withdrawals are possible and stakers can earn yield or rewards for locking their tokens.\u00a0In contrast, holding the token on crypto exchanges earns no yield.<\/p>\n\n\n\nETH On Exchanges\u00a0<\/h2>\n\n\n\n