Ethereum reserves on exchanges have dropped to their lowest level in nearly seven years, signaling a growing trend of long-term holding and self-custody.
Data from CryptoQuant shows that only 19 million ETH remain on exchanges, a figure not seen since 2018.
Ethereum Exchange Reserve (Source: CryptoQuant)
On-chain analytics firm Santiment added that ETH continues to move off exchanges at an unprecedented pace. Currently, just 6.38% of the total ETH supply is held on exchanges, the lowest level since the network’s launch.
Ethereum Exchange Supply (Source: Santiment)
This shift highlights a change in investor behavior as the steady outflow suggests users are prioritizing long-term storage over active trading.
Several factors could be driving this trend, including rising interest in Ethereum-based exchange-traded funds (ETFs), staking opportunities, DeFi growth, and enhanced self-custody solutions.
With fewer ETH tokens on exchanges, selling pressure may decrease, potentially supporting price stability or upward movement.
Additionally, Ethereum’s proof-of-stake model’s increasing adoption of staking further incentivizes investors to lock up their holdings instead of keeping them on trading platforms.
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