Ethereum worth $1.6 billion is exiting exchanges and getting staked HERE

Over the month when Ethereum kept going up, rallying by over 86%, everyone assumed that all the ETH was stored within investors’ wallets. The reality is a little different though. For a long time, it was mostly whales taking up the charge of buying huge amounts of ETH and holding them. This time around, even that is not the case. So the question is…

What happened to all the Ethereum?

The fact that exchanges' positions have shifted from selling to buying again was the first example of this finding. And not just on a small scale. Exiting ETH volumes have ranged from $100 million yesterday to more than $1.6 billion today. As previously stated, such amounts would make sense for whales. Except during this moment, the majority of these decisions are made by investors. This conclusion is based on the fact that participation has increased significantly as the number of new addresses has increased. This number has increased by 8,000 since August. As the number of participants grew, so did the amount of money spent. Furthermore, the number of addresses with balances just reached an all-time high of 60 million.

Investors, on the other hand, have made sure that all of that ETH does not end up in their wallets alone. They're diversifying their Ethereum holdings.

What else has happened to ETH?

Into DeFi protocols, and not in little amounts. The total wealth locked in DeFi protocols throughout the Ethereum network has increased by a factor of ten. The TVL now stands at $157 billion, up $62 billion. As Etheruem remains the highest value locked blockchain, this demonstrates how much DeFi is growing.

Furthermore, a large portion of ETH has been placed into ETH 2.0 deposit contracts. The figure now stands at $23 billion, which is a new all-time record. Despite all of the investments, though, ETH has taken a hit as well.

Over 7000 ETH has been burned since the fee burn mechanism of EIP 1559 was implemented. Due to this, circulating supply has decreased from 117,219k to 117,212k. The fact that Ethereum has no total supply cap helps to balance out the fee burn, but the 18 million ETH minting cap can be concerning.


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