Ethereum’s supply on centralized exchanges has fallen to its lowest level in nearly a decade, signaling a wave of institutional adoption and long-term accumulation.
Ethereum Exchange Balances Plunge
Ether exchange reserves have dropped to just 14.8 million ETH, their lowest point since 2016, according to Glassnode. This marks a 50% reduction in available ETH supply on exchanges over the past two years, with balances falling another 20% since mid-July as institutional buying accelerated.
CryptoQuant data shows a similar pattern, with the Ethereum exchange supply ratio now at 0.14 — its lowest level since July 2016. Historically, when exchange balances decline, it suggests ETH is being moved into cold storage, staking, or DeFi protocols, reducing immediate selling pressure.
Net Outflows Hit Multi-Year Highs
CryptoQuant reports that the 30-day moving average of Ethereum exchange net flows has surged to its highest point since late 2022. Large-scale withdrawals are a strong indicator of investors shifting ETH toward self-custody or decentralized finance.
Glassnode’s data reinforces this trend, showing a negative exchange net position change of 2.18 million ETH on Wednesday — a level seen only five times in the past decade.
Corporate Treasuries and ETFs Fuel Demand
Institutional accumulation has played a key role in driving exchange balances lower. Corporate Ether treasuries, including Tom Lee-chaired BitMine, which now holds more than 2% of the total ETH supply, began ramping up purchases in June.
Since April, around 68 entities have acquired 5.26 million ETH worth $21.7 billion, representing 4.3% of the total supply, according to StrategicEthReserve. Most of this ETH has been staked for additional yields rather than kept on exchanges.
At the same time, US spot Ethereum ETFs have recorded steady inflows, now holding 6.75 million ETH valued at nearly $28 billion, or 5.6% of the circulating supply. Together, treasuries and ETFs account for roughly 10% of all ETH in existence — a share that continues to rise.
Ethereum’s “Wall Street Glow-Up”
BTC Markets analyst Rachael Lucas described Ethereum’s surge in institutional adoption as a “Wall Street glow-up,” noting that exchange supply is at a 9-year low while corporate treasuries continue to stack ETH.
Meanwhile, investor Tom Lee has forecasted that ETH could rally to between $10,000 and $15,000 by the end of the year.
Despite the bullish accumulation trend, Ether prices have recently pulled back, dropping more than 11% over the past week and falling below $4,100 on Thursday morning.
