ETH Staking Surge Fuels Record Reserves Lockup

The ETH reserves on centralized exchanges have been steadily decreasing since August, but this trend is often misinterpreted as evidence of a dwindling supply. In fact, the data tells a more nuanced story.

According to CryptoQuant, the reserve of ETH on exchanges stands at 15.01 million, down from around 15.2 million a month earlier. This decrease in reserves has coincided with a price rise from $1,900 to $2,450-$2,500.

The staking of ETH is the primary driver of this trend, with 42.4 million ETH now staked and accounting for 34.77% of the circulating supply. This represents an absolute record, with nearly seven million additional ETH joining the validator set in just one year.