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 Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
