Ethereum Exchange Balances Drop to 6.06 Million, Down 73% from 2020 Peak

Ethereum (ETH) balances held on exchanges have decreased to around 6.06 million coins. Compared to the all-time high of 22.9 million recorded in June 2020, this represents a drop of approximately 73%. Santiment announced on X that Ethereum balances within exchanges are now about 6.06 million.

Since the June 2020 network peak, exchange holdings have decreased by roughly 16.84 million ETH. Exchange balances reflect the amount of Ethereum stored in centralized exchange wallets for trading purposes. A decline indicates fewer coins available for immediate trading on exchanges, though it does not represent total circulating supply or immediately sellable assets.

Santiment cited staking, spot ETFs, corporate treasury strategies, and long-term holding as reasons for the shift out of exchange wallets. The company explained that funds deposited for network operations or moved to ETF and corporate wallets have contributed to the decline in exchange balances. Spot ETFs and corporate holdings have previously been noted as drivers of Ethereum demand.

Decentralized exchanges, institutional custody wallets, and over-the-counter trades may not be included in exchange address aggregations, meaning exchange balance figures can vary based on collection methodology. Santiment notes that reduced supply available for immediate sale could mean even modest buying pressure has a greater impact on price, though this is an analysis of trading volume changes rather than a bullish prediction.

However, the possibility remains that Ethereum previously held outside exchanges could return to the market through staking withdrawals, ETF inflows, or corporate holdings movement.