Ethereum exchange balance drops to five-year low

• The Ethereum exchange balance has dropped to a five-year low.
• Data from Glassnode showed that the number of ETH held on exchanges stands at 17.86 billion, reaching levels not seen since April 2018.
• Ethereum balances on exchanges have decreased since mid-2020 but began seeing a much more rapid rate of decline in September 2022 as the network transitioned to Proof-of-Stake (PoS).

• CryptoSlate analysis found that withdrawals have been outpacing deposits for the better part of the year, resulting in over 1.59 billion ETH being taken off exchanges.

• The drop in the Ethereum balance that began in September 2022 was in line with the broader market trend we’ve seen with Bitcoin, as the number of BTC held across exchanges also saw a sharp drop between October and December 2022.
• However, Bitcoin’s exchange balance has increased since the beginning of the year, potentially indicating the market’s anticipation of price movements.

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