Ethereum Exchange Balances Plummet by 73% Since June 2020

Ethereum holders are withdrawing their coins from exchanges at an unprecedented rate. According to Santiment data, the supply available on trading platforms has dropped by a staggering 73% since June 2020, when 22.9 million ETH were circulating in those environments.

The current number of Ethereum tokens on exchanges is 6.06 million, down from its peak of 22.9 million in June 2020. This drastic reduction means fewer coins are sitting near order books, which could have significant implications for market liquidity and price movements.

The decline is attributed to various factors, including staking, Ethereum ETFs, corporate treasury strategies, and long-term custody. BitMine, a company holding approximately 5.96 million ETH (4.9% of the total supply), has already staked 85% of its position through its validator network MAVAN as part of its strategy to reach 5% under the 'Alchemy of 5%' plan.

The trend is also reflected in the Ethereum ETFs, which recorded nearly $197 million in net inflows last week and added another $121 million on Monday, bringing the monthly total close to $450 million. Tom Lee projects an annualized staking income of $334 million, which would scale to $392 million once BitMine's entire treasury is locked.