ETH Supply Dries Up: Ethereum Exchanges See Record Low Holdings
Ethereum's tradable supply on crypto exchanges has reached an all-time low of just 3.49% of its total supply, according to fresh data from Santiment.
This decline in exchange balances means fewer ETH tokens are immediately available for trading or selling, which could impact market dynamics if demand increases while supply remains limited.
The reason behind this trend is largely due to the growing use of ETH in staking and decentralized finance (DeFi), with around 35% of Ethereum's total supply estimated to be staked. Additionally, about $53 billion is locked in DeFi, providing holders with alternative ways to earn yield or keep their coins active on-chain.
Large treasury holders are also contributing to this trend, as seen with BitMine's recent decision to stake over 5 million ETH.