Ethereum holdings on exchanges drop to near 10-year low amid long-term asset accumulation

The amount of Ethereum (ETH) available on exchanges has declined to 8.97 million coins, marking the lowest level since November 2015. According to Santiment's analysis published on March 21, 2025, this reduction is primarily driven by the rising popularity of decentralized finance (DeFi) and staking, both of which decrease selling pressure. Over the past seven weeks, ETH supply on exchanges has dropped by approximately 16.4%, indicating long-term investor accumulation.

However, this decrease in available supply has not translated into upward price momentum. Ethereum's price has fallen by roughly 47% from its December 2024 peak of $4,107. Analysts at Standard Chartered recently lowered their Ethereum price target forecast for the end of 2025 from $10,000 to $4,000, citing rising competition from Layer-2 networks that offer lower transaction fees.

Ethereum's core network utilization is also declining. ETH-based decentralized exchanges (DEX) volume dropped from $92 billion in December 2024 to $82 billion in February 2025.

Potential support may come from the US Securities and Exchange Commission's (SEC) recent authorization of Ethereum ETF staking products. However, institutional interest remains weak, as reported by crypto.news.