Ethereum Exchange Supply Falls 15% in 11 Weeks as Bitcoin Balances Rise: Santiment
Key Takeaways
- •Ethereum's supply on cryptocurrency exchanges has declined roughly 15% over the past eleven weeks, according to on-chain analytics firm Santiment.
- •Bitcoin's exchange balances increased over the same eleven-week period, contrasting with Ethereum's declining exchange supply.
- •Ethereum can be staked in smart contracts or deployed in decentralized finance protocols off exchanges, while Bitcoin held in self-custody earns no native on-chain yield.
- •Declining exchange balances are frequently viewed as a sign of reduced immediate selling pressure, though this does not guarantee future price appreciation.
- •US spot bitcoin and ether ETFs, launched in January 2024 and July 2024 respectively, hold their assets with custodians, so institutional flows through these products do not appear in exchange balance data.
Ethereum's supply on cryptocurrency exchanges has declined by roughly 15% over the past eleven weeks, according to on-chain analytics firm Santiment, extending a trend of investors moving ETH away from centralized trading platforms. Over the same period, Bitcoin's exchange balances have quietly increased, highlighting diverging investor behavior between the two largest cryptocurrencies.
A declining exchange supply is often associated with holders transferring assets into self-custody or long-term storage, reducing the amount of ETH readily available for trading. While this does not guarantee future price appreciation, lower exchange balances are frequently viewed as a sign of reduced immediate selling pressure. The latest data points to continued accumulation behavior among Ethereum holders. The shift toward self-custody has been a recurring industry theme since the collapse of the FTX exchange in November 2022 eroded confidence in centralized platforms, and Ethereum offers off-exchange destinations that Bitcoin does not: ETH can be staked in smart contracts to help secure the network and earn rewards, or deployed in decentralized finance protocols.
Bitcoin Exchange Balances Move Higher
In contrast to Ethereum, Bitcoin's exchange balances have quietly climbed during the same period. An increase in BTC held on exchanges may indicate that more coins are available for trading or liquidity, although exchange inflows can occur for a variety of reasons and do not necessarily signal imminent selling. Bitcoin has no native staking mechanism, so coins held in self-custody earn no on-chain yield — a structural difference between the two assets.
The diverging trends suggest that investor behavior toward Ethereum and Bitcoin has differed in recent weeks, with Ethereum holders appearing more inclined toward self-custody.
Cointelegraph reported the development on X on August 20, 2026:
UPDATE: Ethereum's exchange supply has fallen roughly 15% over eleven weeks while Bitcoin's balances quietly climbed back, per Santiment. pic.twitter.com/5aSfp3LjQX — Cointelegraph (@Cointelegraph) August 20, 2026
Different On-Chain Trends Emerge
The latest Ethereum exchange supply data highlights contrasting on-chain dynamics between the two largest cryptocurrencies. While Ethereum's declining exchange balances may reflect longer-term holding behavior, Bitcoin's rising exchange supply suggests a different pattern of capital movement. Exchange supply figures also cover only one slice of the market: US spot bitcoin and ether exchange-traded funds, which launched in January 2024 and July 2024 respectively, hold their underlying assets with custodians rather than on trading platforms, so institutional flows moving through those products do not appear in exchange balance data.
Investors will continue monitoring exchange balances alongside ETF flows and broader market activity to assess whether these trends persist.
