Ethereum (ETH) supply has reached its lowest level since November 2015, continuing the downward trend on centralized exchanges.

Within the last seven weeks, the amount of ETH on exchanges has decreased by 16.4%, dropping to 8.97 million ETH. This decline indicates that investors are increasingly directing their tokens towards decentralized finance (DeFi) and staking mechanisms.

CHANGE IN INVESTOR BEHAVIOR POST-MERGER
Following Ethereum’s transition to the Proof of Stake (PoS) mechanism after the merger, there is a noticeable trend of investors actively participating within the Ethereum network rather than using centralized exchanges. According to Santiment data, Ethereum holders are increasingly shifting their assets towards staking and DeFi applications.

The exit of Ethereum from exchanges, in addition to the return advantages provided by staking rewards, has increased interest in activities such as lending, providing liquidity, and yield farming within the DeFi ecosystem. This demonstrates investors’ willingness to utilize their ETH within the network rather than passively holding them in exchanges.

INCREASED SPEED OF ETHEREUM’S EXCHANGE SUPPLY DECLINE
The 16.4% reduction in Ethereum’s exchange supply over the last seven weeks stands out as the largest decrease since late 2024. This trend indicates that Ethereum has evolved from just being a tradable asset to becoming a profitable investment tool.

The ongoing exodus of ETH from exchanges suggests that investors expect long-term price increases and indicates a continuation of the upward trend in the market. Decreased supply may create scarcity effects, putting upward pressure on prices at stable demand levels. Additionally, reduced exchange liquidity can lead to increased volatility, accelerating price movements.

STRONGER POSITION FOR ETHEREUM IN THE FUTURE
Ethereum’s move away from centralized platforms to find more active usage within the network is seen as a significant development in terms of long-term sustainability. The increasing attraction of DeFi and staking mechanisms to more investors indicates that Ethereum’s position has evolved from just being a cryptocurrency to a valuable financial asset in an expanding ecosystem.