Ethereum Hits Record Low Supply on Exchanges Amid Rising DeFi and Staking Popularity
Published 2025-03-21
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As of March 21, Ethereum's availability on exchanges has plummeted to its lowest since November 2015, at just 8.97 million ETH. This reduction, highlighted in a recent Santiment report, is attributed to the growing appeal of decentralized finance and staking. As investors increasingly lock away their holdings rather than leave them on exchanges, Ethereum's exchange supply has dropped by 16.4% over the last seven weeks, signaling a trend toward long-term accumulation. However, this supply contraction has not yet translated into price gains for Ethereum, which has seen a 47% drop from its December high of $4,105 to the current price of $1,990 as of March 21, making it one of the significant cryptocurrencies' weakest performers.
Market and technical indicators suggest a potential further decline. Standard Chartered analysts have adjusted their year-end price prediction for ETH from $10,000 to $4,000, citing increased competition from other networks, particularly Ethereum layer-2s, which attract users with lower fees. According to DeFiLlama, the past week's volume handled by Ethereum-based decentralized exchange (DEX) protocols was $9.8 billion, with Arbitrum and Base accounting for $5.67 billion. The monthly DEX volume on Ethereum has decreased from $92 billion in December to $82 billion in February, and a further drop is anticipated in March. This decline in mainnet usage has also affected Ethereum's fee revenue, which fell from $218 million in December to just $46 million in February.
Price on crypto.news.
Market and technical indicators suggest a potential further decline. Standard Chartered analysts have adjusted their year-end price prediction for ETH from $10,000 to $4,000, citing increased competition from other networks, particularly Ethereum layer-2s, which attract users with lower fees. According to DeFiLlama, the past week's volume handled by Ethereum-based decentralized exchange (DEX) protocols was $9.8 billion, with Arbitrum and Base accounting for $5.67 billion. The monthly DEX volume on Ethereum has decreased from $92 billion in December to $82 billion in February, and a further drop is anticipated in March. This decline in mainnet usage has also affected Ethereum's fee revenue, which fell from $218 million in December to just $46 million in February.
Price on crypto.news.
Ethereum's revenue continues to suffer despite the introduction of the Dencun upgrade, which cut gas fees by 95%. Ethereum's total value locked decreased from $76 billion in December to $46 billion.
On the technical front, Ethereum is experiencing resistance at $2,042, with the 50-day moving average acting as a barrier. The Bollinger Bands indicate low volatility, pointing to a possible consolidation phase. The Relative Strength Index (RSI) shows Ethereum recovering from oversold conditions with a current reading of 41.22, but overall momentum remains weak. Although trading volume is low, indicating uncertainty among traders, a slight increase suggests some accumulation. If Ethereum can break above the $2,042 resistance, the following targets could be $2,163 and $2,370. However, if it fails to hold at $1,986, a drop toward $1,714 could occur, where previous buying interest has shown.
On the technical front, Ethereum is experiencing resistance at $2,042, with the 50-day moving average acting as a barrier. The Bollinger Bands indicate low volatility, pointing to a possible consolidation phase. The Relative Strength Index (RSI) shows Ethereum recovering from oversold conditions with a current reading of 41.22, but overall momentum remains weak. Although trading volume is low, indicating uncertainty among traders, a slight increase suggests some accumulation. If Ethereum can break above the $2,042 resistance, the following targets could be $2,163 and $2,370. However, if it fails to hold at $1,986, a drop toward $1,714 could occur, where previous buying interest has shown.
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