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

According to Cointelegraph, analyst Milk Road stated that the amount of ETH stored in centralized cryptocurrency exchanges has fallen to an unprecedented low, which could lead to supply tightness. According to Glassnode data, the holdings of ETH on exchanges are 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 holdings of Bitcoin on exchanges remain 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.

"The current 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."