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Ethereum exchange reserves fall to lowest levels since 2016 amid price volatility Ethereum exchange reserves fall to lowest levels since 2016 amid price volatility

Ethereum exchange reserves fall to lowest levels since 2016 amid price volatility

Data via Glassnode

ETH outflows from exchanges hit historic lows, reflecting shift to long-term holding.

Onchain Highlights

DEFINITION: The total amount of coins held on exchange addresses.

Ethereum (ETH) balance on exchanges has seen a notable decline throughout 2024. Starting the year with 14 million ETH, the exchange reserves gradually decreased, dipping below 12.5 million in late June and reaching a low of around 11.7 million ETH by early August.

This coincided with a period of volatility in Ethereum’s price, which saw fluctuations from around $4,000 in March to significant drops in late July.

ETH: Exchange Balance: (Source: Glassnode)
ETH: Exchange Balance: (Source: Glassnode)

The current trend reflects a broader pattern dating back to 2020, where ETH holdings on exchanges have declined steadily, reaching levels not seen since 2016. The continued outflow from exchanges suggests increased long-term holding behavior, potentially driven by staking, DeFi activity, or self-custody solutions, as users opt to move assets off centralized platforms.

ETH: Exchange Balance: (Source: Glassnode)
ETH: Exchange Balance: (Source: Glassnode)