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

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

CHANGE IN INVESTOR BEHAVIOR POST-MERGER After transitioning to the Proof of Stake (PoS) mechanism post-merge, it is observed that investors are actively participating in the Ethereum network rather than centralized exchanges. According to Santiment data, Ethereum holders are increasingly directing their assets towards staking and DeFi applications.

The exit of Ethereum from exchanges has not only increased interest in the activities of borrowing, providing liquidity, and yield farming within the DeFi ecosystem, alongside the return advantages provided by staking rewards. This situation highlights investors’ desire to actively engage with their ETH within the network rather than passively holding them in exchanges.

ETH EXCHANGE SUPPLY DECLINE ACCELERATES The 16.4% decrease in Ethereum’s exchange supply over the past seven weeks is the largest drop registered since the end of 2024. This trend underscores Ethereum’s transition from being just a tradable asset to a profitable investment instrument.

The continued outflow of ETH from exchanges suggests that investors are anticipating long-term price increases and that the upward trend in the market persists. Decreasing supply may create a scarcity effect, pushing prices upwards at stable demand levels. Additionally, falling exchange liquidity may increase volatility and accelerate price movements.

STRENGTHENING POSITION OF ETHEREUM IN THE FUTURE Ethereum’s shift away from centralized platforms to find more active usage within the network is considered a significant development for its long-term sustainability. The increasing attraction of DeFi and staking mechanisms to more investors shows that Ethereum has evolved from being just a cryptocurrency to a valuable financial asset in an expanding ecosystem.