The post Ethereum Exchange Supply Hits 10-Year Low—What’s Next for ETH Price? appeared on BitcoinEthereumNews.com.

Ethereum exchange supply has dropped 16.4% over the past seven weeks amid growing investor interest in staking protocols and DeFi. Layer-2 solutions like Arbitrum and Base have attracted significant user activity, reducing Ethereum’s fee revenue from $218 million in December to $46 million in February. The available Ethereum supply on centralized exchanges has fallen to its lowest point since November 2015 with only 8.97 million ETH out there. This drop indicates a changing trend in investor behavior, fueled by the increased use of decentralized finance (DeFi) and staking. Ethereum Supply, On-chain Metrics & Technicals According to Santiment, Ether owners are increasingly choosing to lock their assets in staking protocols rather than leave them in exchanges. This is what has seen a 16.4% decrease in ETH’s exchange supply over the last seven weeks, which is an indication of long-term accumulation trends. In spite of this constrictive supply, Ethereum price has lagged, declining 47% from its December high of $4,105 to a recent low of $1,990. Source: Santiment On-chain metrics and technicals imply further downside for Ether. Standard Chartered’s analysts have downgraded their end-of-year price forecast for ETH, cutting their estimate to $4,000 from $10,000, as highlighted in our previous story. One of the major reasons behind this downgrade is the growing competition from Ethereum’s own layer-2 networks. These lower-fee scaling solutions have drawn a considerable percentage of users and siphoned activity away from the Ethereum mainnet. Statistics from DeFiLlama show that in the last week, decentralized exchanges (DEXs) on Ethereum processed $9.64 billion in volume. Most of this traffic ($5.67 billion) was handled by layer-2 solutions like Arbitrum and Base. The flow of transactions has affected the general economic model of Ethereum. DEX volumes on Ethereum’s native network dropped from $92 billion in December to $82 billion in February. Another major…

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Filed under: News - @ March 22, 2025 6:25 am