dYdX (dydx) 
Ethereum’s Supply on Centralized Exchanges Hits 10-Year Low
The supply of Ethereum (ETH) on centralized exchanges has dropped to its lowest level in over a decade. This shift reflects growing interest from large holders and institutions, who continue to accumulate the asset for long-term investment.
The Decline in Exchange Holdings
Recent data from Santiment, a leading blockchain analytics platform, reveals that less than 4.9% of Ethereum’s total supply is now held on centralized exchanges. This marks a record low in the network’s history, which spans more than 10 years. Over the last five years, approximately 15.3 million ETH have been withdrawn from these trading platforms, signaling a clear trend toward self-custody and accumulation.
In the past month alone, over 1 million ETH were withdrawn from exchanges, according to reports from CryptoRank.io. The platform highlighted that “users are increasingly choosing to accumulate Ethereum rather than trade it,” indicating growing long-term confidence in the asset.
Ethereum Whales Continue to Accumulate
On-chain data shows that Ethereum whales—wallets holding more than 10,000 ETH—have significantly increased their holdings. Since late April, these large investors have added over 450,000 ETH, pushing their total holdings to 40.75 million ETH as of May 10. This is the highest level of whale ownership since March, based on Santiment’s data.
Institutional Interest in Ethereum Grows
Institutions are also demonstrating a stronger appetite for Ethereum. U.S.-based spot ETH ETFs recorded net inflows of $30 million in the last month, according to SoSoValue data. This marks a reversal from the prolonged period of outflows seen earlier. Additionally, BlackRock, one of the largest asset managers globally, has reported that its Ethereum assets under management have surpassed $2.9 billion, further signaling continued accumulation by institutional players.
Market analysts are optimistic about Ethereum’s positioning as a preferred asset for institutional investors. In a May 12 market analysis, Adriano Feria wrote:
“ETH remains the most natural choice for institutional diversification… It’s the only crypto asset with ETF access, regulatory clarity, and built-in yield potential.”
Impact of Recent Network Upgrades
The Ethereum network has also benefited from recent technological improvements. The Pectra upgrade, launched on May 7, enhanced the network’s data handling capabilities. This upgrade has boosted activity on Layer-2 networks built on Ethereum, with platforms like Base leading the way. According to L2Beat, Base recorded 259 million transactions in the past 30 days, contributing to a 20% increase in overall Layer-2 activity compared to the previous month.
Upcoming Regulatory Decisions
The market is closely monitoring the U.S. Securities and Exchange Commission’s (SEC) potential decision on whether to allow staking for spot ETH ETFs. A decision is expected by June 1. If approved, institutions could earn yield through these funds, making Ethereum ETFs even more attractive to investors. BlackRock and other financial giants have argued that staking would enhance the utility and appeal of these funds.
Ethereum’s Competitive Edge
Ethereum continues to solidify its position as a leader in the cryptocurrency space. Analysts predict that it may outperform other projects, such as Solana, in the next bull market. Arthur Hayes, co-founder of BitMEX, recently stated that Ethereum’s robust security, active developer community, and large user base could drive its outperformance during the upcoming cycle.
As of now, Ethereum is trading at $2,535, reflecting a 57% increase over the past 30 days. This recovery comes after the asset experienced a 45% decline in Q1, underscoring its volatility but also its potential for growth.
