Ethereum Supply on Exchanges Crashes to Historic Lows
Ethereum (ETH) broke its all-time high in August 2025, but in 2026, ETH experienced a significant supply shift. According to Santiment, the percentage of Ethereum held on centralized exchanges has fallen to only 3.49% of the total supply.
This drop is attributed to staking and decentralized finance (DeFi) activities moving ETH supply away from exchanges. Approximately 35% of ETH is staked, utilizing a portion in blockchain applications rather than being held on exchanges.
The decrease in exchange reserves can be considered a significant indicator of a shrinking supply of ETH available for sale in the market. However, this alone should not be seen as a bullish signal, as holders may transfer funds to exchanges again or liquidate their staking and DeFi positions.