Ethereum Supply on Exchanges Hits Record Low

Ethereum's supply on exchanges has reached an all-time low of 3.49% of its total supply, according to data from Santiment. This contraction could become significant for buyers if demand strengthens and prices rise.

Santiment reports that approximately 1.16% of Ethereum's total supply has left exchanges since June 1, not just a decline in exchange balances. The decline in exchange balances had already fallen over the summer to levels not seen since Ethereum's early years.

The platform suggests that some ETH is being held outside of exchanges for staking and decentralized finance (DeFi) use. About 35% of the total ETH supply is estimated to be staked, with DeFi applications on Ethereum holding around $53 billion in value.