Santiment experts explained the decline in ether balances on exchanges
Nearly 36.5 million ether are currently staked — almost 30% of the total supply. According to the experts, the amount of coins removed from circulation is increasing at the same time.
The queue for activating new validators has reached a record 3.7 million coins, while the average waiting time for activation has increased to 64 days. Experts attribute this to the continued interest in long-term holding of the second-largest cryptocurrency by market capitalization.
Over the past month, ether has been trading within a narrow range of $2,900–$3,300, and against this backdrop there is a high probability of continued outflows of the asset from crypto exchanges. The reduction in the available supply of ether on trading platforms decreases selling pressure, which in the long term may strengthen ETH’s future upward movement, Santiment representatives believe.
Previously, Bloomberg Intelligence senior strategist Mike McGlone stated that the probability of ether falling to $2,000 is much higher than a breakout above the $4,000 level.
See also: "Geopolitical tensions pushed Bitcoin below $84,000"
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