Ethereum volumes on centralized exchanges have fallen to their lowest level ever, sparking speculation about a possible supply shortage in the market.
According to Glassnode, the balance on exchanges fell to 8,7% of the total ETH supply last Thursday, the lowest share recorded since launch. Ethereum in 2015. On Sunday, this level remained close to this minimum — 8,8%.
The sharp drop reflects a 43% decline in ETH exchange balances since the beginning of July, which coincided with an acceleration in purchases of treasury digital assets and increased activity in the ecosystem. Ethereum as a whole.
Analysts at Milk Road, a macroeconomic research agency, believe that ETH is “quietly entering its most tight supply period in history.”
Experts attribute this shift to structural changes in ETH usage. More and more tokens are flowing into staking protocols, restaking protocols, second-layer networks, treasury balances, and collateralized positions. DeFi and long-term independent storage.
Technical market analysts believe this divergence is a classic sign of «hidden buying power» that sometimes precedes a rally.
They believe the overall price momentum «looks bullish,» suggesting ETH could return to higher levels.
This may be why BitMine Immersion Technologies, which is already the largest corporate holder Ethereum, continue to buy cryptocurrency on the decline, despite the fact that traders are set for a further decline.
Over the past two days, the company has purchased another $199 million worth of ETH, adding to its rapidly growing reserves.