A leading crypto analytics firm says that Ethereum (ETH) has been moving off exchanges since late February.
In a new blog post, Santiment says that the exchange outflow should help reduce sell-pressure for ETH, which just cracked above $3,000 this week.
“ETH saw an acceleration in Supply on Exchange in early Feb 2022, which quite evidently reflected its sell pressure through February. However, since late Feb, we are starting to see a continued outflow and it’s still ongoing for now, which should help alleviate sell pressure.”
Ethereum is trading at $3,063.28 at time of writing, up more than 11% in the past seven days.
The analytics firm also notes that the amount of ETH staked in the ETH 2.0 contract has accelerated recently as time ticks down to the Ethereum merge, which is anticipated to happen in the second quarter of this year.
Ethereum 2.0 aims to solve the network’s scalability issues by shifting over from a proof-of-work to a proof-of-stake consensus mechanism. After the upgrade, the smart contract platform should eventually be capable of facilitating 100,000 transactions per second via second-layer solutions, according to Ethereum co-founder Vitalik Buterin.
Nearly 10.7 million ETH worth more than $32.5 billion has been locked into the contract at time of writing, according to the Ethereum search engine Etherscan.
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