Ethereum Exchange Inflows Surge, Raising Sell Pressure, as Staking Ratio Hits Record High

A surge in Ethereum (ETH) inflows to exchanges is increasing short-term selling pressure, though the rising share of tokens locked in staking points to the potential for tighter supply ahead, according to an analysis.

On Oct. 11, CryptoOnchain, a contributor to cryptocurrency data analytics firm CryptoQuant, wrote that Ethereum inflows to exchanges are rising even as leverage demand remains limited and the amount of supply locked through staking continues to grow.

According to CryptoQuant, Ethereum's net exchange inflows over the past seven days totaled 87,258 ETH, the highest level in the past 14 days. The seven-day average net inflow was also 24,789 ETH, or 375% above the 30-day average. By contrast, Binance posted average daily net stablecoin outflows of $72.8 million over the same period. That suggests buying power on exchanges is shrinking even as the amount of Ethereum available for sale is increasing.

Buying demand from U.S. investors also weakened. The Coinbase premium index fell to -0.11 on Oct. 10 from -0.01 on Oct. 5. Over the same period, Ethereum slid from $2,698 to $2,474 before closing at $2,507. Funding rates, however, held around 0.01, suggesting the decline was unlikely to have been driven by large-scale liquidations of leveraged positions.

By contrast, the staking ratio has continued to rise. The share of total Ethereum supply that is staked increased to 36.13% on Oct. 10 from 35.80% on Sept. 27. Network activity also remained elevated relative to longer-term averages. Average daily burned fees fell 32% from a week earlier to $238,000, but were still 116% above the 90-day average. Median transaction fees were also 144% higher than the 90-day average.

CryptoOnchain said the current data shows short-term selling pressure building at the same time as staked supply continues to increase. In the past, similar combinations have appeared before periods of supply tightening, though that does not guarantee the same pattern will repeat. It added that investors should watch whether exchange inflows lead to actual selling and whether the staking ratio continues to climb.