Ethereum, the largest altcoin, broke its 2021 all-time high (ATH) in August, setting a new record for August 2025.
However, in 2026, ETH experienced a significant supply shift, falling sharply to levels around $1,500.
At this point, the amount of Ethereum held on centralized cryptocurrency exchanges has fallen to its lowest levels.
ETH Supply on Exchanges Drops to 3.49%!
Cryptocurrency analysis platform Santiment stated that the percentage of ETH held on exchanges has fallen to only 3.49% of the total supply.
Santiment also added that an amount equivalent to 1.16% of the Ethereum supply has been withdrawn from exchanges since June 1st.
The fact that there is less ETH on exchanges means that, in the short term, the amount of coin that investors are holding directly on exchanges for sale will decrease. However, a decrease in the supply on exchanges alone does not mean that the price of ETH will rise.
Staking and DeFi Are Moving ETH Supply Away From Exchanges!
According to Santiment, staking and decentralized finance (DeFi) activities also play a significant role in the supply fluctuations on Ethereum. It is estimated that approximately 35% of ETH is staked.
This situation results in a portion of ETH being utilized in blockchain applications rather than being held on centralized exchanges.
What Does Low Stock Supply Mean for Price?
The decrease in the amount of ETH on exchanges can be considered a significant indicator of a shrinking supply of ETH available for sale in the market.
Especially during periods of strong demand, a decrease in the available ETH supply that buyers can encounter can make price movements more sensitive.
However, the decline in exchange reserves alone should not be considered a bullish signal. If ETH holders transfer funds to exchanges again or liquidate their staking and DeFi positions, the liquid supply in the market could increase again.
Therefore, for Ethereum, it is important to monitor the trend of supply on exchanges, staking rate, the amount of ETH used in DeFi, and new demand together in the coming period.
