Ethereum Exchange Supply Hits Record Low Amid Price Surge

The Ethereum supply on exchanges has hit a record low of 3.49% as the cryptocurrency price gains around 10% over the past month, currently trading above $2,600.

This decline in exchange balances means less ETH is immediately available to be sold, which could contribute to higher prices if demand strengthens.

A significant portion of Ethereum's supply is being absorbed by staking and decentralized finance (DeFi) activities, with around 35% of ETH staked and $53 billion held in DeFi value.

Rather than guaranteeing higher prices, shrinking exchange balances reduce the readily tradable supply. This has led some analysts to predict a near-term correction, particularly after Ethereum's 90% rebound from its bottom.