Analyst: CEX platform ETH holdings drop to 8.8%, a historical low, supply tightness may drive price increase

According to Cointelegraph, analyst Milk Road stated that the amount of ETH stored in centralized cryptocurrency exchanges has dropped to an unprecedented low, which could lead to supply tightness. According to Glassnode data, the amount of ETH held on exchanges is at a low of 8.8%, essentially the lowest level since the network launched in mid-2015.

Since early July, the amount of ETH on exchanges has decreased by 43%, coinciding with the acceleration of purchases by the Digital Asset Treasury (DAT) that began in early July. In contrast, the amount of Bitcoin on exchanges remains higher at 14.7%. Milk Road believes that ETH is continuously being pulled into some illiquid areas, such as staking, re-staking, layer two network activities, DAT, collateral loops, and long-term custody, indicating that the tightening supply could drive prices up.

"Currently, market sentiment is low, but market sentiment does not determine supply. The supply of ETH is quietly tightening, and the market is deciding the next direction. When this gap closes, prices will rise accordingly."