Ether Holdings on Major Exchanges Plummet to a 9-Year Low

The supply of ether (ETH) on centralized exchanges has dropped to its lowest level in over nine years, reflecting a growing trend of investors shifting assets to self-custody.

According to data from CryptoRank and Santiment, the amount of ETH held in exchange-linked wallets has fallen to 8.97 million tokens, marking the lowest level since November 2015.

A continued decline in exchange reserves could lead to a supply squeeze, potentially driving prices higher as fewer tokens remain readily available for trading.

“Investors are increasingly moving ETH off exchanges and into cold storage, reducing market liquidity. We saw a similar trend with BTC in January when exchange reserves hit a seven-year low, which was followed by a sharp price increase,” CryptoRank stated.

On January 13, Bitcoin reserves on centralized exchanges hit a seven-year low, and within days, BTC’s price surged from around $90K to over $109K.