The top two centralized cryptocurrency exchanges, Binance and Coinbase, have witnessed significant outflows of staked Ethereum.
- Binance’s staking service has experienced a net outflow of $340 million.
- Coinbase has witnessed a $367 million net outflow of staked ETH.
Since “Ethereum’s Shanghai upgrade,” the two largest centralized cryptocurrency exchanges, Binance and Coinbase, have seen significant outflows of staked Ether (ETH) as investors turn to decentralized competitors.
According to Dune Analytics data, the world’s largest cryptocurrency exchange, Binance’s staking service, has seen a net outflow of $340 million. In addition, Coinbase’s staking platform has witnessed a $367 million net outflow of staked ETH since April 12 as withdrawal requests, including reward withdrawals and full exits, have outpaced new deposits.
The change came after Ethereum’s much-anticipated Shanghai upgrade on April 12, which let investors withdraw about $35 billion worth of tokens that had been locked up in staking contracts.
Further, on May 1st, Binance received over $505 million in Ethereum from an unknown wallet, which was the largest transaction in five years from self-custody to a crypto exchange. However, at the time of writing, ETH was up by around 2% in the last 24 hours and traded at $1,865 with a trading volume of $7.2 billion, as per CoinMarketCap.
Moreover, analysts predict that the event will mark a significant turning point for the $225 billion network. And would increase staking participation, drawing in large investors, and shifting the balance of power among staking services.