The world’s number two cryptocurrency has plummeted in supply following its Merge update. Reserves nosedived after the network upgraded in September last year, which switched from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) network.
On-chain data from Glassnode showed that the number of Ethereum (ETH) in exchanges decreased by 37 percent, a significant drop signalling bullish markets.
Fewer ETH in circulation indicates a spike in value for the cryptocurrency, similar to a coin burn.
Currently, there are 13.36 million ETH in circulation valued at $19.7 billion USD in mid-February, significantly down from 19.12 million ETH totalling $31.3 billion in September before the upgrade.
Traders also anticipate the digital coin’s Shanghai upgrade set to launch in March, which will enhance key issues with the network and provide stakers and validators to withdraw Beacon Chain holdings.
Beacon Chain investors have staked 16 million ETH totalling 14 percent of the total number of coins in circulation, or $25 billion at current market prices.
