Ethereum Exchange Supply Drops to 16 Million ETH – Lowest Since Mid-2016

Ethereum balances on exchanges have crashed to levels not seen in nearly a decade. With sell-side liquidity drying up, any surge in demand could trigger rapid price movements.

⬤ Ethereum (ETH) exchange balances just hit their lowest point since mid-2016, based on on-chain data. The amount of ETH sitting on trading platforms is now comparable to when the ecosystem was a fraction of its current size.

⬤ Exchange reserves have dropped to around 16 million coins – down from over 30 million during previous market cycles. While Bitcoin has recently flowed back onto exchanges, Ethereum keeps moving off them. Most of this ETH isn't lost or forgotten; investors are simply holding it away from the market.

⬤ Over-the-counter liquidity has ticked up slightly but stays minimal compared to total Ethereum supply. With fewer coins on exchanges, order books get thinner. When demand kicks in under these conditions, prices can shift fast instead of gradually.

⬤ These persistently low exchange balances cut down immediate selling pressure and magnify responses to new demand. If liquidity stays tight across both exchanges and OTC markets, price moves could accelerate quickly as buyers fight over limited available supply.

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Eseandre Mordi E-mail

Eseandre is a blockchain lover from Nigeria, who also likes music and protecting women's rights.