On-chain data from Glassnode indicates that the percentage of ETH on centralized exchanges fell to 8.7% of the total supply, and later stabilized around 8.8%.
This is the lowest percentage of ETH ever available on exchanges, down 43% since the start of July.
Such levels are historically significant because exchanges are the primary source of liquidity for trading and selling.
On the other hand, Bitcoin’s exchange balance consistently shows a higher percentage, around 14.7%, highlighting how constrained Ethereum’s liquid supply has become.
Experts believe this divergence reflects structural differences in how ETH is used compared to BTC, with Ethereum becoming more committed to long-term or utility-driven use cases.
The “Exchange Supply Ratio” has hit 0.137, a point reached not since 2016.
Historically, low exchange supply has sometimes coincided with large rallies. Notably, Ethereum’s exchange balances fell sharply during the 2021 bull cycle.
At that time, a supply squeeze preceded roughly a +300% price rally