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Ethereum exchange supply hits 10 year low as whales accumulate

Ethereum Exchange Supply Hits 10-Year Low | Whales Accumulate Big

By

Lara Johnson

May 20, 2025, 09:32 AM

Edited By

Alice Turner

2 minutes needed to read

A graphic showing a downward trend in Ethereum exchange supply with whales accumulating coins.
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In a notable shift in the cryptocurrency market, Ethereum's exchange supply has plummeted to a ten-year low, with less than 4.9% of its total supply on centralized platforms. This decline signals a significant trend as large holders accumulate ETH, exhibiting a bullish sentiment across the board.

What’s Driving the Change?

Recent data reveals that over 450,000 ETH have been amassed by major holders since late April 2025. This trend aligns with heightened interest from institutions, particularly in light of an influx of $30 million into ETH exchange-traded funds (ETFs). Analysts point to these actions as promising signs for Ethereum's market stability and potential price surge.

User Insights and Sentiments

  • Support Among the Community: Comments reflect excitement, with users expressing optimism like, "Giga bullish! Let’s go for ATH!" and "ETH about to get on a wide ride!"

  • Market Caution: However, some users also caution, noting, "If a whale decides to dump, it could cause a major dip." This mixed sentiment shows a blend of hope and wariness among traders.

  • Future Forecast: With network upgrades and possible SEC approval for staking in ETH ETFs on the horizon, many anticipate a strong performance in the next bull cycle.

"Bullish signs everywhere we look. 3k next month!" - Enthusiastic Trader

Key Points to Ponder

  • πŸ“‰ Ethereum's centralized exchanges hold a historic low.

  • πŸš€ Accumulation by large holders, over 450,000 ETH accumulated.

  • πŸ’Έ Institutions are increasingly interested, influencing market dynamics.

Curiously, this change in exchange supply could reshape trading strategies. As whales consolidate their holdings, will other participants begin to feel the impact of reduced liquidity?

Experts suggest that this positive trend reflects broader acceptance and confidence in Ethereum's long-term value.

What Lies Ahead for Ethereum's Market

There's a strong chance that Ethereum will continue to see price increases in the coming months, fueled by the growing accumulation among large holders and positive sentiment from institutions. Analysts estimate a potential price increase of around 15% to 20% in the next quarter if the current trends persist, particularly as the SEC's approval for staking in ETH ETFs looms closer. The tight supply on exchanges might compel smaller traders to buy in, leading to an uptick in demand that can further drive prices higher. However, caution remains crucial; should a major holder decide to sell, it could trigger a rapid downturn, making market conditions unpredictable.

A Historical Echo from the Gold Rush

In many ways, Ethereum's current environment mirrors the sentiment during the California Gold Rush. Just as prospectors hoarded gold, driven by the belief in untapped potential, today's crypto whales are stockpiling ETH, confident in its future value. This historical precedent highlights how collective enthusiasm can spur a movement, but it also emphasizes that overzealous speculation can lead to sudden corrections. As investors navigate this modern gold rush, the parallels caution against letting excitement overshadow the need for grounded strategy.