Is Ethereum accumulating strength to explode? Ethereum deposited in exchanges has dropped to a nearly 3-year low

As investors rush to deposit their Ethereum tokens into the ETH 2.0 deposit contract, the number of tokens on exchanges has fallen to a near 3-year low.
The amount of Ethereum held by exchanges continues to decline, reaching its lowest level in nearly three years. At the same time, the amount of tokens locked in ETH 2.0 contracts has reached a record high of more than 6 million.
According to data from CryptoQuant, ETH reserves on centralized exchanges have seen a massive decline over the past few days, especially after the mid-May market crash as investors rushed to deposit their tokens on trading platforms.

With the recent sharp drop, though, the number of tokens has fallen to its lowest level in about two and a half years. As popular cryptocurrency analyst Willy Woo noted, much of this may have to do with the rapid rise of the DeFi market and ETH 2.0.
ETH 2.0 is a hot topic in the cryptocurrency circle recently. It allows investors to lock up their Ethereum holdings to earn a fixed income. The minimum threshold for participating in staking is 32 ETH, and validators will need to run a validator node. The entire staking process does not require the use of professional machines and can be completed on an ordinary computer or laptop. However, validators need to stay online at all times, otherwise they will face a small fine. The ETH staking return rate is expected to be around 4%-10%. A program called "slashing" will be used to deal with validators who maliciously operate the network by confiscating their staked assets.
According to Dune Analytics, more than 6 million Ethereums have been staked so far, a record high, equivalent to approximately US$14 billion.

Bitcoin on exchanges has also been falling recently. Data from Santiment earlier today showed that supply on trading venues has fallen to its lowest point since early January.
The source of these fluctuations may be the "big appetite" of whale users, who accumulated about 60,000 coins in just a few days in early July. Institutions have also been buying, as Canada's Purpose Bitcoin ETF increased its holdings by about 30% in a few weeks.

Santiment described the development as "upward momentum as the massive buying means the risk of a Bitcoin sell-off is significantly reduced."
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Source: Bitpush