Ethereum Shifts from Crypto Exchanges to Staking Providers

The amount of Ethereum held on centralized exchanges has fallen to its lowest level in six months, with just 26.5 million ETH, worth around $49 billion, on such platforms. This represents a 10% decline since the start of the year. The exodus was sparked by the collapse of derivatives exchange FTX late last year, with investors preferring to self-custody their holdings or stake them rather than leave them on exchanges. The largest share of exchange-held Ethereum belongs to Coinbase, with 31% of the total. Binance has 19% and Bitfinex holds 8.3%. Analytics provider Glassnode has reported that withdrawals from the Beacon Chain have now leveled off between 300 and 700 per day after an initial surge. The biggest beneficiary of the Shapella upgrade has been Lido, which has yet to enable withdrawals, with a market-dominant share of 33.5%.