As Fusion's Ethereum pledge increases, the amount of cryptocurrency stored on the exchange decreases
The amount of Ether (ETH) held by exchanges hit a four-year low, while a pledge record -- the upcoming proof-of-stake (PoS) update -- was recorded in Ethereum 2.0. On the web, the name has recently been changed to "consensus layer" or "consensus layer".
Centralized exchanges monitored by the analytics platform Glassnode currently hold 19.9 million Ether coins -- a metric that was just under 20 million in July 2018, according to Glassnode.
The number of Ether coins stored on exchanges is down 10 percent from 21,191 million five days ago.
The data is also consistent with recent high cash outflows from brokerages.
Cash outflows from exchanges reached their highest level in 13 months, according to Glassnode data, suggesting investors are less interested in trading or storing assets on centralised exchanges.
Chainalysis, a blockchain monitoring and reporting platform, published a similar conclusion: "Change in exchange-stored Ether experienced its biggest one-day drop in 202 days, from 432,840 ETH to 249,580 ETH."
Ethereum pledge
The sharp drop in exchange-stored Ether is likely the result of an increase in the amount of ether mortgaged as networks prepare for maximum upgrades.
Unlike current Ethereum, Ethereum 2.0 is a proof-of-stake (or PoS) network in which verifiers pledge 32 ETH to verify the integrity of the blockchain.
Beacon Chain, the PoS version of Ethereum launched in December 2020, has also seen a steady increase in the number of tokens pledged in recent days.
The merger is expected to take place on September 19th, resulting in the merger of the current mainnet (or "mainnet") with the PoS version, currently through a total of over 410,000 different verifiers with a total pledge of 13.1 million ETH.
Amid these positive flows, the price of Ether has surged 8.87% in the past 24 hours to $1,629.
The second-largest cryptocurrency on the market has a market cap of nearly $199 billion, up nearly 34.5 percent from last week.