Ethereum’s supply held on centralized exchanges has fallen to its lowest level since the network’s early years, as institutional and corporate accumulation continues to rise. The trend points to a shift in investor behavior toward long-term holding rather than short-term selling.
Data from CryptoQuant shows that Ethereum’s Exchange Supply Ratio (ESR)—which tracks the share of ETH stored on exchanges—has dropped to around 0.137 across all platforms. This marks the lowest reading since 2016. On Binance, the largest exchange by trading volume, the ESR has declined to roughly 0.032–0.0325, reinforcing the broader trend.
ETH Supply Shift Signals Reduced Selling Pressure
According to CryptoQuant analyst Arab Chain, Ethereum has seen steady net outflows from exchanges into private wallets. This pattern is commonly linked to accumulation phases, where investors move assets off exchanges to hold or stake them, reducing immediate selling pressure.
Exchange supply data shows a steady decline from mid-2024 through late 2025, with the ESR falling from about 0.165 to current levels near 0.137. During the same period, ETH prices moved between $4,500 and an all-time high of $4,953 in August 2025 before dropping to around $2,830, based on CoinMarketCap data.
Binance has followed a similar path, with its ESR falling from roughly 0.038 in mid-2024 to just above 0.032 today. Historically, ETH prices have shown a positive correlation with exchange supply trends, as lower available supply can tighten market liquidity.
Ethereum’s shift to a Proof-of-Stake model has also played a major role. Nearly 36 million ETH is now staked, requiring tokens to be moved off exchanges and into staking wallets or protocols. This has accelerated the decline in exchange-held ETH.
Layer 2 Networks Accelerate the Move to DEXs
Concerns over centralized exchange risks—highlighted by events like the 2022 FTX collapse—have pushed more users toward self-custody. At the same time, Layer 2 networks such as Base, Arbitrum, and Optimism have attracted growing amounts of liquidity.
These Layer 2 solutions offer faster and cheaper transactions, encouraging users to move ETH from centralized exchanges to decentralized platforms. As a result, decentralized exchanges like Uniswap and PancakeSwap continue to pull liquidity away from traditional trading venues.
On-chain data shows that around 67 public companies, institutions, and government-related entities now hold about 6.71 million ETH, valued at roughly $19.02 billion. Ethereum-focused ETFs hold an additional 6.22 million ETH, worth about $17.63 billion. Together, these holdings account for more than 10% of Ethereum’s total supply.
The shrinking supply of ETH on exchanges, combined with rising institutional demand, has created a tighter liquidity environment. While selling pressure may have contributed to recent price declines, analysts note that continued institutional buying could support higher prices over the longer term.
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