Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has experienced a significant increase in deposits on centralized exchanges (CEX) over the past two months, with $383 million of Ethereum (ETH) deposited into these cryptocurrency exchanges, according to data from IntoTheBlock.
One of the largest deposits came from a single address, about 61,216 ETH since the Ethereum Initial Coin Offering (ICO) in 2015. Interestingly, this address remained inactive for eight years until it recently transferred its entire balance to another address connected with the Kraken exchange on July 19th.
Whale Alert, a service that monitors and records significant crypto transactions, has recently identified multiple transfers of ETH to Coinbase. Over the past week, more than 200,000 ETH has been sent to the exchange via various transactions.
These significant movements of ETH to centralized exchanges may imply that certain investors are preparing to sell their holdings, potentially exerting downward pressure on the price. However, it is also possible that some transfers are not intended for immediate or complete liquidation but for diversification or security purposes.
Ethereum Staking Hits Record High After Shapella Upgrade
Despite the increase in deposits made by CEX, Ethereum experienced a remarkable surge in the total amount of ETH staked on its network. According to data from IntoTheBlock, this figure reached $52.3 billion, the highest ever.
The successful launch of the Shapella upgrade on July 14 is attributed to the increase in staking activity. This upgrade introduced a new feature that offers stakers the ability to withdraw their ETH at any time without having to wait for months or years.
The process of staking enhances the security and decentralization of the Ethereum network. It effectively minimizes the risk of a single entity gaining control over 51% of the network’s power, ensuring a more distributed system.
Additionally, staking reduces energy consumption and mitigates environmental impact compared to traditional Proof-of-Work (PoW) systems, as it operates on a more efficient model called Proof-of-Stake (PoS).
According to Coinmarketcap, ETH is trading at $1,890 with a slight -0.19% decrease over the past 24 hours. However, the value of ETH experienced some decline in the previous week, as it was trading above $2,000 on July 16.
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