After the Merge upgrade, Ethereum supply plunges by 37%

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The bullish sign is the decline in exchange supply, especially weeks before the Shanghai upgrade. News Collect this piece of history. NFTEther, the second-largest cryptocurrency in market capitalization, has seen a steady decline in exchange supply over the past six month post-Merge. The Ethereum network underwent a major upgrade in September last, moving from a proof of work (PoW), to a proof of stake (PoS), and the event was known as the Merge. According to Santiment’s on-chain data, the amount available ETH on exchanges is continuing to fall. There has been 37% less ETH available on exchanges since the Merge. A steady decline in ETH supply is a bullish sign. This is because there is less ETH available for trade or sale. This number has fallen to 13.36 million ETH, worth $19.7billion in the second week. Source: SantimentA large portion of the ETH supply has been moved into self custody, while many traders prefer to stake with the Shanghai upgrade around the corner. The upcoming major update to Ethereum, Shanghai, will be launched in March. The Shanghai hard fork will include more improvements proposals for network enhancements, and allow validators and stakers to withdraw their holdings from Ethereum’s Beacon Chain. It is expected to launch in March. The current price of ETH is approximately $25 billion. This is a substantial amount that will slowly become liquid after the Shanghai hardfork. Apart from a steady decline in ETH supply on exchanges, overall market supply has also fallen since the London upgrade. The Ethereum Improvement Proposal (1559) introduced a fee-burning mechanism. This is the Ethereum burn rate. Source: Beacon chain. A total of 2.9 Million Ethereum has been burned since August 2021’s London upgrade. This amount is approximately $4,5 billion today.