Ethereum Exchange Supply Hits 11-Year Low

Ethereum's supply on exchanges has reached an 11-year low, according to data from Santiment. The amount of ETH held on exchanges has decreased by 73% since its peak in June 2020, falling to 6.06 million ETH.

This significant decline means that the amount of ETH near exchange order books and easily sellable has decreased substantially. Santiment attributes this shift to various factors such as staking, ETF products, institutional treasury strategies, and long-term custody, where validators are locking up their ETH to contribute to network security.

As a result, the narrowing supply could make ETH price movements more sensitive, as smaller buying waves can create sharper movements in price. Santiment states that having less ETH on exchanges constricts sell-side liquidity, which may not require extraordinary demand levels to impact prices.