The largest altcoin Ethereum (ETH) has been lagging behind Bitcoin and its market for a long time as it struggles to combat the declines it has experienced.
Leaving investors disappointed with its poor performance, ETH’s supply on cryptocurrency exchanges has dropped to very low levels.
Cryptocurrency analysis platform Santiment said in its latest assessment that ETH supply on exchanges has fallen to its lowest level since November 2015.
“Thanks to the many DeFi and staking options, Ethereum holders have reduced the available supply on exchanges to almost 8.97 million. This is the lowest level in nearly 10 years (November 2015). There is 16.4% less ETH on exchanges compared to just 7 weeks ago.”
Santiment said that ETH has been rapidly leaving crypto exchanges, with exchange balances 16.4% lower since the end of January.
This is considered a signal that investors are moving ETH to cold storage wallets for long-term holding and that the Ethereum price will increase in the future.
At this point, analysts note that a significant drop in ETH supply on exchanges is commonly known as a supply shock and signals a potential price increase. However, the price increase will only occur if demand remains strong or increases to outweigh the decreasing supply.
While the decline in exchange supply gives investors hope for ETH, analyst Scott Melker, nicknamed “The Wolf of All Streets”, stated that ETH is at a critical crossroads and said, “Either Ethereum bounces from here and these levels become a generational bottom, or everything is over for ETH.”
Thanks to the many DeFi and staking options, Ethereum’s holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago.
— Santiment (@santimentfeed)
March 20, 2025
This is not investment advice.