Ethereum Supply on Exchanges Hits All-Time Low—A Bullish Signal?
The Ethereum (ETH) supply on centralized exchanges has reached its lowest level in history, according to new on-chain data from Santiment.
This milestone underscores a broader trend of dwindling exchange balances for ETH, and it may carry significant implications for market sentiment and price action.
The chart shows a steep and consistent decline in the ratio of ETH held on exchanges—a pattern that has accelerated over the past year. Meanwhile, Bitcoin (BTC) follows a similar but more moderate trajectory, with its exchange supply now at its lowest since November 2018.
This trend is widely interpreted as bullish: fewer coins on exchanges generally means reduced selling pressure. When holders move assets off exchanges, it’s often a signal that they intend to hold them long-term, rather than sell or trade.
As investor confidence in Ethereum’s long-term prospects grows—driven by staking, Layer 2 development, and increasing institutional interest—this data could be a reflection of an evolving investment mindset.
In summary, the record-low ETH supply on exchanges suggests a tightening market and may point to an incoming supply squeeze, should demand continue to rise.
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
