- Kraken accounted for nearly 25% of all major ETH withdrawals since the upgrade.
- 89% of all transfers classified as CEX were exchanges redistributing to their wallets, indicating low selling pressure.
Nearly a month has passed since the much-anticipated launch of the Shapella Upgrade, a major milestone that allowed strikers to revoke their locked Ethereum [ETH]. Blockchain analytics company Nansen published a report on May 9 that provides an overview of the network post-Shapella.
Read Ethereum’s [ETH] Price Forecast 2023-24
According to the analysis, the amount of ETH wagered on the Beacon chain has increased from what it was at the time of the April 12 Shapella update, showing that deposits on the proof-of-stake (PoS) chain alone but have grown.
According to the Nansen dashboard, Ethereum smart contracts hold 19.4 million ETH at the time of writing.
Source: Nansen
CEXs are first in line
Nansen’s report also shared some interesting observations about withdrawal patterns. Centralized crypto exchanges (CEXs) led the way in withdrawals, accounting for nearly 73% of withdrawals as of May 8.
Contrary to fears of a massive sell-off, however, most of the ETH that was no longer restocked was earmarked for the exchange’s internal operations.
For example, Kraken, which accounted for nearly 25% of all major ETH withdrawals since the upgrade, did so because of the regulatory action by the US Securities and Exchange Commission (SEC) that led to Kraken closing its crypto staking services in the US. ended.
Similarly, Coinbase, which received a Wells Notice from SEC about its staking offerings, was the second largest entity in terms of withdrawal volume, with a share of 14%.
Source: Nansen
In addition, the idea that most of the withdrawn ETH was not for sale was reinforced by the fact that 89% of all transfers classified as CEX were CEXs that were redistributed to their wallets.
Source: Nansen
Is ETH Really Bullish?
ETH is up 13% in the first week after the upgrade and has crossed the $2000 level. However, broader market conditions ended the rally and dragged it to $1841.82 at the time of writing, data from CoinMarketCap revealed.
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Nevertheless, the sentiment for ETH still looked bullish. The off-exchange supply continued to grow in May, in contrast to the declining supply on the exchanges. This implied that ETH’s long-term bulls were bullish on the second-largest crypto by market cap.
Source: Sentiment
On the contrary, the number of long positions taken for ETH in the futures market decreased compared to the bearish short-term positions. This was proven by Coinglass’s Longs/Shorts Ratio.
Source: Coinglass
