According to data from Santiment, Ethereum’s exchange supply has fallen to a record low of 3.49% of total supply. An additional 1.16% of ETH supply has moved off exchanges since June 1, underscoring a sustained decline in exchange-held balances.
The shift means fewer ETH tokens are immediately available for trading. Santiment noted that exchange balances had already fallen to their lowest levels since Ethereum’s early years this summer. While lower exchange supply can be bullish if demand rises, analysts caution it does not guarantee price appreciation because transfers off exchanges do not always indicate long-term holding.
A major factor behind the decline is the growing use of ETH in staking and DeFi. Around 35% of Ethereum’s supply is estimated to be staked, and the network has roughly $53 billion locked in DeFi. Large treasury holders are also contributing: BitMine reported staking more than 5 million ETH earlier this month.
Ethereum’s network activity remains resilient. CryptoQuant reported Gas Used at approximately 217.1 billion, up 0.26%, while Priority Fees jumped 26.74% to about $464,000. Blocks mined remained nearly unchanged at around 7,147, suggesting higher fee competition stems from demand rather than increased block production.
ETH recently climbed from around $1,900 to $2,800 before pulling back toward $2,660. CryptoQuant identified the $2,600–$2,650 area as important support. If ETH holds that level while network activity and priority fees remain high, it could move back toward the $2,700–$2,800 range.
