Ethereum reserves on exchanges have dropped to their lowest level in nearly seven years, signaling a growing trend of long-term holding and self-custody.
Data from CryptoQuant shows that only 19 million ETH remain on exchanges, a figure not seen since 2018.
On-chain analytics firm Santiment added that ETH continues to move off exchanges at an unprecedented pace. Currently, just 6.38% of the total ETH supply is held on exchanges, the lowest level since the network’s launch.
This shift highlights a change in investor behavior as the steady outflow suggests users are prioritizing long-term storage over active trading.
Several factors could be driving this trend, including rising interest in Ethereum-based exchange-traded funds (ETFs), staking opportunities, DeFi growth, and enhanced self-custody solutions.
With fewer ETH tokens on exchanges, selling pressure may decrease, potentially supporting price stability or upward movement.
Additionally, Ethereum’s proof-of-stake model’s increasing adoption of staking further incentivizes investors to lock up their holdings instead of keeping them on trading platforms.
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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