Ethereum exchange reserves shrink

The Ethereum transition to Proof-of-Stake (PoS) has catalyzed a significant decline in ETH exchange reserves. Since the PoS implementation, Ethereum holders have increasingly opted to stake their ETH, reducing exchange liquidity.

The approval of the Ethereum ETF has further intensified this trend by providing a new investment vehicle for institutional and retail investors. This scarcity effect is expected to drive up Ethereum prices as supply constraints become more pronounced.

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