Recent data from CryptoQuant, an on-chain analytics firm, indicates that the amount of Ether held in cryptocurrency exchanges’ reserves has hit new daily lows since the start of July.
Ethereum all exchange reserves. Source: CryptoQuant
To determine if this is a bullish or bearish development for the top altcoin, let’s take a closer look at some of the factors playing a role in the increased demand for Ether, including the Eth2.0 staking contract, increased activity in decentralized finance and traders’ possible excitement ahead of the implementation of Ethereum Improvement Proposal (EIP) 1559.
Eth2 staking surpasses 6 million Ether
One source for the increased demand for Ether is the Eth2 staking contract which surpassed the 6 million Ether mark on June 30.
There is now 6 million ETH in the eth2 deposit contract.
— Anthony Sassano Ξ (@sassal0x) July 1, 2021