Ethereum On-Exchange Holdings Falls To Multi-Year Low – Here’s How Much ETH Is Left

In a shocking development, the price of Ethereum has fallen below the key $4,000 level as the ongoing bearish pressure in the broader crypto market intensifies. On-chain data shows that a notable portion of ETH is still being withdrawn from crypto exchanges in the face of the growing market volatility.

Investors Are Still Withdrawing Ethereum From Exchanges

Even though its price is heading downward, the on-chain dynamics of Ethereum are entering a striking new phase. A recent report reveals that the total balance of ETH on all cryptocurrency exchanges has dropped sharply to its lowest level in years.

Shared by Coin Bureau on the social media platform X, this swift withdrawal of coins from centralized platforms highlights a clear shift toward long-term holding and self-custody among investors. Typically, such a trend is viewed as a sign of increasing confidence in ETH’s future trajectory.

Since there are fewer tokens available for purchase in every crypto exchange in the ever-evolving sector, the market appears to be entering a tightening phase. This trend might increase the volatility and pave the way for more robust price reactions in the coming months.

According to Coin Bureau, ETH’s total exchange balance has plunged by over 20% since July this year. After the persistent decline in inflows, the overall number of ETH present in exchanges is approximately 14.8 million ETH, which marks the lowest levels since 2016.

In the midst of the fading Ethereum inflows to crypto exchanges, the ETH treasury is growing rapidly as companies continue to acquire the leading altcoin. The ETH treasury growth is hinting at a potential supply shock in the near future.

Francesco Andreoli, a developer and investor, highlighted that ETH is on a tear due to the notable growth of its treasury reserves among big companies. Within a two-month period, cryptocurrency treasuries holding ETH have soared from $2 billion to around $21 billion.

This rise highlights ETH’s growing allure as a long-term strategic asset and the rapid diversification of treasuries into digital assets. Andreoli stated that the surge makes ETH the fastest-growing treasury asset in the crypto and financial sector.

A Shift In Crypto Treasury Dominance

Ethereum treasury’s significant growth has placed it ahead of Bitcoin treasuries, marking a turning point in the digital asset landscape. With this rise in treasury reserves, ETH is now carving out a dominant role, as institutional investors look beyond Bitcoin. 

Coin Bureau noted that Digital Asset Treasuries (DATs) are now in control of 0.36% of the ETH supply in circulation, edging out that of BTC. Data shows that DATs are presently holding 0.35% of the BTC overall supply.

Although the disparity in treasuries is tiny now, it is likely to become bigger in the near future. ETH’s outperformance may be bolstered by its utility-driven ecosystem, staking rewards, and deep integration across Decentralized Finance (DeFi).