Ethereum (ETH), the second-largest cryptocurrency by market value, has seen the share of its supply held on centralized exchanges fall to a record low, according to data from on-chain analytics platform Santiment.

Only 3.49% of ETH's total supply now sits on exchanges, the figures show, while roughly 1.16% of the supply has moved off trading platforms since June 1, underscoring a steady decline in exchange-held balances.

Cointelegraph flagged the milestone in a post on X:

NOW: Ethereum's exchange supply has hit a record low of 3.49% of total supply, with 1.16% moving off exchanges since June 1, per Santiment. pic.twitter.com/jcR6FhTffP

— Cointelegraph (@Cointelegraph) September 25, 2026

Why Traders Watch Exchange Supply

Crypto traders monitor exchange supply closely because it can provide insight into how much cryptocurrency is readily available for trading. When the share declines, a smaller percentage of the circulating asset is sitting on exchange platforms. For this reason, shifts in exchange balances are among the most-watched supply metrics in the cryptocurrency market.

Readings like Santiment's are possible because Ethereum runs on a public blockchain: analytics platforms track the balances held at addresses attributed to exchanges, meaning the amount of ETH sitting on centralized trading platforms can be measured directly from transparent ledger data rather than depending on exchange self-reporting.

Moving ETH away from exchanges, however, does not necessarily that every holder plans to keep it for the long term.

A Sustained Shift Away From Exchanges Since June

The latest figures point to a gradual but sustained movement of ETH away from exchanges since the beginning of June.

ETH can leave trading platforms for several reasons. Holders may transfer coins into self-custody wallets, use them within decentralized finance applications, or move them for other on-chain activities. Because blockchain transfers do not always reveal the intention behind each transaction, declining exchange balances should not automatically be interpreted as direct evidence of long-term accumulation.

Even so, the scale of the decline is notable. With another 1.16% of total ETH supply moving off exchanges since June 1, the proportion remaining on trading platforms has reached its lowest recorded level. The shift reflects coins changing where they are stored rather than disappearing from the network, with balances moving to self-custody addresses, decentralized finance protocols and other on-chain venues.

What the Record Low Means

A lower exchange supply can become important for market liquidity, since fewer coins are immediately available on exchanges. In theory, reduced available supply combined with stronger demand could create favorable conditions for price appreciation.

Exchange balances are only one market indicator, however, and ETH's price will continue to depend on demand, investor behavior and broader cryptocurrency market conditions. The record low therefore does not guarantee that Ethereum will rise. Instead, it provides a clearer picture of where ETH is being held.

Because the metric is derived continuously from on-chain data, future Santiment readings will show whether the share of ETH on exchanges keeps falling, stabilizes or climbs back, making the direction of this trend one to follow alongside other supply and demand indicators.

For now, Santiment's figures mark a significant milestone: just 3.49% of Ethereum's total supply remains on exchanges, following a further decline since June.