Record low ETH on exchanges sparks possible supply squeeze, with impacts on market.Record low ETH on exchanges sparks possible supply squeeze, with impacts on market.

Ether Supply on Exchanges Hits Record Low

2025/12/07 18:51
What to Know:
  • ETH held on exchanges reaches lowest level since Ethereum’s launch.
  • Potential supply squeeze could affect market dynamics.
  • Significant implications for staking and DeFi protocols.

Ether balances on centralized exchanges have reached an unprecedented low of approximately 8.7-8.8% of total supply, according to Glassnode’s on-chain data, signaling potential market shifts.

This reduction in exchange-held Ether suggests a shift towards longer-term holdings and staking, potentially leading to tighter market liquidity and influencing price dynamics.

ETH supply on centralized exchanges has reached a record low, constituting only about 8.7-8.8% of the total circulating supply according to Glassnode.

This decline in ETH on exchanges raises expectations for a supply squeeze, potentially influencing future market behavior.

ETH Exchange Holdings Dip to Historic Low of 8.7%

The reduction in ETH supply on exchanges marks a historical low since Ethereum’s inception in 2015. On-chain analytics by Glassnode detail a drop to approximately 8.7–8.8% of total Ether supply, signaling potential market implications. Prominent entities like Milk Road describe the environment as the tightest supply situation for ETH observed, saying,

Centralized exchanges worldwide credit this on-chain data reduction, acknowledging major shifts in Ether’s distribution landscape.

Supply Squeeze Anticipated with Low Exchange Reserves

This record low in exchange-held ETH could trigger a supply squeeze, as commented by platforms such as Bitget and Phemex. The potential for a price surge is highlighted, tied to the reduction in available float.

The financial landscape is seeing shifts, with staking, collateral loops, and DeFi developments absorbing ETH. Despite low sentiment and ETF outflows, on-chain supply dynamics remain pressing for ETH’s market outlook.

New Low in ETH Supply Reflects Post-Merge Dynamics

Previous decreases in ETH on exchanges, notably post-Merge and post-Shapella, set precedence. However, current analytics and Glassnode data mark a qualitatively new low, shaped by mature staking and Layer-2 adoption.

Potential outcomes include market boosts if demand rises amid reduced supply. Historical supply constraints have often led to price increases, casting this event as crucial for understanding future ETH and DeFi market directions.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

CME Group to launch options on XRP and SOL futures

CME Group to launch options on XRP and SOL futures

The post CME Group to launch options on XRP and SOL futures appeared on BitcoinEthereumNews.com. CME Group will offer options based on the derivative markets on Solana (SOL) and XRP. The new markets will open on October 13, after regulatory approval.  CME Group will expand its crypto products with options on the futures markets of Solana (SOL) and XRP. The futures market will start on October 13, after regulatory review and approval.  The options will allow the trading of MicroSol, XRP, and MicroXRP futures, with expiry dates available every business day, monthly, and quarterly. The new products will be added to the existing BTC and ETH options markets. ‘The launch of these options contracts builds on the significant growth and increasing liquidity we have seen across our suite of Solana and XRP futures,’ said Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products. The options contracts will have two main sizes, tracking the futures contracts. The new market will be suitable for sophisticated institutional traders, as well as active individual traders. The addition of options markets singles out XRP and SOL as liquid enough to offer the potential to bet on a market direction.  The options on futures arrive a few months after the launch of SOL futures. Both SOL and XRP had peak volumes in August, though XRP activity has slowed down in September. XRP and SOL options to tap both institutions and active traders Crypto options are one of the indicators of market attitudes, with XRP and SOL receiving a new way to gauge sentiment. The contracts will be supported by the Cumberland team.  ‘As one of the biggest liquidity providers in the ecosystem, the Cumberland team is excited to support CME Group’s continued expansion of crypto offerings,’ said Roman Makarov, Head of Cumberland Options Trading at DRW. ‘The launch of options on Solana and XRP futures is the latest example of the…
Share
BitcoinEthereumNews2025/09/18 00:56