Ethereum Supply Squeeze? 10-Year Low Ignites Price Speculation

Christian Encila

Last Updated: March 21, 2025 11:30 pm

3 mins read

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The supply of Ethereum on cryptocurrency exchanges has declined to a level not seen since November 2015, a key indicator of the dramatic change in how investors are storing the digital currency.

Based on recent data, around 8.97 million ETH are in their possession now. This shortage comes as the price of Ethereum has taken a precipitous decline.

Supply Tightens On Exchanges

The declining volume of Ether on exchanges is an indication that the holders are taking their money elsewhere in growing numbers. One of the main reasons behind this is the rise of decentralized finance, or DeFi for short, according to a recent examination by Santiment.

People are interacting with several DeFi protocols with their Ethereum to lend liquidity or earn rewards. Another principal element is the expansion of staking, whereby ETH owners “lock up” their coins to help secure the network and be rewarded while doing so. Therefore, there is fewer Ethereum to sell on the exchanges.

👋 Thanks to the many DeFi and staking options, Ethereum’s holders have now brought the available supply on exchanges down to 8.97M, the lowest amount in nearly 10 years (November, 2015). There is 16.4% less $ETH on exchanges compared to just 7 weeks ago. 😮 pic.twitter.com/r5957wPhLi

— Santiment (@santimentfeed) March 20, 2025

Ethereum Price Takes A Hit

Despite the lower supply of Ethereum on exchanges, which some would expect to drive prices up because of scarcity, the opposite has occurred. Based on latest figures, the price of Ethereum has dropped by about 45% from its December high.

On March 21, the price was about $1,899. Ethereum has been among the worst-performing major cryptocurrencies over the past few years.

The cause for such a decline in price is varied and can involve overall market sentiment, macroeconomic conditions, and increased competition from other blockchain systems.

Experts Share Their Thoughts

Financial analysts are giving their opinions regarding what this means for the future value of Ethereum. Standard Chartered, a well-known financial institution, has recently reduced its year-end price target for Ethereum. They now predict a price of $4,000 at the end of the year, a significant drop from their previous estimate of $10,000.

ETH is currently trading at $1,967. Chart: TradingView

The primary purpose of this revision is the rising competition from Ethereum’s competitor layer-2 networks, which aim to provide faster and cheaper transactions on the Ethereum foundation blockchain. Users and traffic on such networks can be different from the central Ethereum network.

Upsides On The Horizon?

Despite the current price hiccups, there are potential explanations why a recovery could be realized. One possibility is staking exchange-traded funds, or ETFs. If regulations allow ETFs that directly stake Ethereum, it could attract more institutional investment and increase demand.

Featured image from Gemini Imagen, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.