Ethereum Exchange Supply Drops to 2015 Levels – What Could be Next?

Ethereum’s exchange reserves have dropped to levels last seen during its launch year—2015–2016, according to on-chain data shared by CryptoQuant analyst. This marks a historic supply squeeze, reflecting rising long-term accumulation and demand.

In comparison, Bitcoin’s exchange supply—though also in decline since 2020—has only returned to 2018 levels, its ninth year of existence. Despite its stronger marketing push, Bitcoin’s drawdown hasn’t matched Ethereum’s in depth or scale.

30% Supply Decline for Both ETH and BTC Since 2021

The report states that both ETH and BTC have seen their exchange-held supply fall by around 30% since peaking in 2021. This synchronized contraction points to a shared macro trend: more investors moving assets off exchanges and into long-term storage.

Such consistent outflows signal rising inferred demand—the kind not always visible through price alone.

Fundamentals Drive Ethereum Demand Without Marketing Hype

While Bitcoin has benefited from high-profile support—from names like Michael Saylor to a crypto-friendly U.S. administration—Ethereum has quietly outperformed in terms of organic supply contraction.

ETH’s shift into long-term holdings continues at a pace equal to BTC’s, despite a far lighter promotional effort. According to Papi, this reinforces Ethereum’s fundamental strength as a value-holding asset.

Conclusion

Ethereum’s supply dynamics are making a clear statement. With exchange reserves now back to 2015 levels, the asset’s long-term appeal appears to be growing—with or without headlines. As both ETH and BTC tighten in supply, investor behavior points to rising confidence in both networks’ future roles.

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