Ethereum Exchange Reserves Plummet, Price Remains Flat
Ethereum exchange balances have dropped by nearly 10% since January, but the price of the second-largest cryptocurrency remains stuck near $1,900.
According to onchain data from CryptoQuant, aggregate exchange reserves are down approximately 1.74 million coins this year, from 16.86 million at the start of the year to 15.12 million ETH currently.
This decline in reserves is largely attributed to staking, which has climbed past 34% of circulating supply, roughly 41.4 million ETH. The seven-day reward rate sits at a three-year low, but this hasn't seemed to impact the price.
Exchange-traded funds (ETFs) have been absorbing some of this supply, with spot Ether products collecting about $245 million in the week ended Aug. 7, their strongest stretch since April and a fifth consecutive week of inflows.
The majority of these ETF inflows are attributed to BlackRock's iShares Ethereum Trust, which accounted for over 80% of that total, bringing cumulative net inflows across US funds to roughly $11.46 billion.