the amount stored on these exchanges act like bitcoin in stuck wallets and cannot be sold to help stabalize the price a bit.
Isen't it exactly the opposite though? The Steem on exchanges are much more likely to be sold than the Steem that is vested as Steem Power.
yes, I agree. Steem on exchanges provides liquidity for Steem, which ultimately means more supply and downward pressure on the price. If Witnesses can keep motivating people to power up their Steem (i.e. voting bots to provide paid promotions) instead of letting it rot on an exchange, that will ultimately push the price up and lower the supply. So many hodlers of steem that don't realize their holdings are rotting over time as the supply increases. They could be selling votes through smartsteem or minnowbooster, or at the very least curating posts. On the flip side, the more steem that gets powered up and utilized, the less everyone's upvote is worth. The liquidity on the exchanges is definitely a double edged sword for Steemians, as Steem would be more functional if it were worth $10 each right now, but then that would cause those with lots of steem power to power down for profit, increasing the supply and lowering the price. It's a no-win for New Users, as they are essentially wielding rubber knives in a gun fight (if they don't buy or lease steem power).
Yep, new users are in a kind of bad place right now..