Ethereum’s tradable supply on crypto exchanges has fallen to a record low. Only 3.49% of ETH is now held on tracked platforms
In fact, fresh data from Santiment reveals that another 1.16% of ETH supply has moved off these trading venues since June 1.
Shrinking Supply
Exchange balances had already dropped to their lowest levels since Ethereum’s early years this summer. The decline means fewer ETH tokens are immediately available for trading or selling. However, lower exchange supply does not guarantee a rise in its price.
Santiment explained that a major reason behind this is the growing use of ETH in staking and DeFi. Around 35% of Ethereum is estimated to be staked. The network also has about $53 billion locked in DeFi, which gives holders more ways to earn yield or keep their coins active on-chain.
To top that, long-term holders are also keeping more ETH away from exchange order books. Large treasury holders are adding to this trend. BitMine, for example, reported staking more than 5 million ETH earlier this month.
If demand for the crypto asset increases while exchange supply remains limited, buyers could have fewer readily available coins to purchase.
Network Demand Stays Strong
Ethereum has been one of the best-performing assets. It climbed from around $1,900 to $2,800 in a span of a month before falling back toward $2,660. Despite this, its network activity is exhibiting signs of strength. CryptoQuant reported that Gas Used is currently around 217.1 billion, up 0.26%. The small increase suggests that demand for Ethereum block space has not fallen sharply during the price correction.
Priority Fees are showing a stronger move as the latest figure stands near $464,000, up 26.74% over the past day. Priority Fees are payments users make to encourage faster transaction processing. The sharp rise means that users are competing more for available block space.
This points to continued activity across the network. At the same time, Blocks Mined remains almost unchanged at around 7,147, which essentially indicates that the rise in fees is not coming from a major increase in block production. Instead, existing blocks are seeing stronger demand and higher fee competition.
According to CryptoQuant, the $2,600-$2,650 area remains an important support zone for the leading altcoin. If ETH manages to hold the level while network activity and Priority Fees stay high, it could potentially move back toward the $2,700-$2,800 range.
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