The last few months have seen a significant drop in the amount of ether held on centralized exchanges.

Data from Glassnode shows that ETH exchange balances now sit at just 8.8% of the total supply — the lowest level since Ethereum launched in 2015.

This story is an excerpt from the Unchained Daily newsletter.

ETH has been flowing into long‑term holding channels, including staking, layer 2 networks, corporate digital asset treasuries (DATs), and collateral loops.

One analyst described it as ETH entering its tightest supply environment ever, with ETH “quietly” being pulled into places that don’t sell, which could create a supply squeeze if demand increases.

In contrast, bitcoin’s exchange balance is still higher at around 14.7% of total supply.