Ethereum Exodus Accelerates: Leaving Exchanges Faster Than Bitcoin in 2025

Holders are pulling their ETH off trading platforms at a pace that's now outpacing Bitcoin—a shift that's reshaping market dynamics as we head into 2026.

The Great Withdrawal

It's not just a trickle anymore. Exchange balances for the second-largest cryptocurrency are dropping faster than its older sibling. That means less immediate sell pressure and more coins tucked away in cold storage and smart contracts.

What's Driving the Drain?

Look beyond simple speculation. The surge in staking, the growth of Layer 2 networks, and the rise of DeFi are creating powerful sinks for ETH. It's being put to work, not just held as a digital commodity. This utility-driven demand is a fundamentally different beast from pure store-of-value narratives.

The Liquidity Squeeze

Fewer coins on exchanges mean thinner order books. That can amplify price moves—both up and down. For traders, it's a new landscape of volatility. For long-term believers, it's a sign of deepening conviction, a bet on the ecosystem's future rather than next week's trading range.

A Tale of Two Assets

Bitcoin's journey off exchanges tells one story: digital gold being secured. Ethereum's accelerating exit tells another: a productive asset being deployed. This divergence highlights their evolving, and increasingly distinct, roles in the digital economy. One is the bedrock; the other is the bustling city built upon it.

So, while traditional finance still puzzles over 'intrinsic value,' crypto's second act is quietly moving off the speculative shelves and into the engine room. The real test isn't the price on a screen—it's what the network can do when the tokens aren't for sale.

Ether holders move, sell, and spend more than BTC investors

November’s data retrieved from Glassnode reveals that ETH holders are moving, selling, and spending more than BTC investors. The on-chain crypto data aggregator emphasized that the reason behind ETH’s mass exchange exit is that its network powers crypto applications, which utilize ETH as gas fee.

Meanwhile, Glassnode says BTC holders tend to keep their coins in storage and treat them as digital gold. The blockchain data firm noted that BTC moves less frequently the ETH, behaving more like a digital savings asset. Over 61% of BTC’s circulating supply has been held dormant for more than one year. 

By contrast, ETH rotates supply at nearly twice the rate of BTC because it functions as digital oil. ETH is also both stockpiled and actively used as collateral and a source of network fuel, reflecting a more active capital base. 

According to Glassnode, ETH’s recent behavior is also reflective of its network’s inherent properties as a high-transaction platform for smart contracts. Long-term ETH holders are also mobilizing their old tokens at a rate almost three times that of Bitcoin’s long-term holders, pointing to ETH’s utility-driven behavior. The movement of ETH suggests that its long-term holders are more willing to part with their coins than BTC holders

Ether shows both utility and store of value behavior 

Nearly 25% of ETH is locked in ETFs and native staking as the coin shows both utility and store of value behavior. Meanwhile, ETH turns over at twice the rate of BTC, reflecting the coin’s dual nature as both a hoarded and productive digital asset.

Ether also powers the DeFi ecosystem, with about 16% of ETH’s supply now deployed within liquid staking and collateralized structures. Glassnode also notes that this highlights ETH’s dual role as working collateral supporting DeFi and as a reserve asset.

As per Glassnode, ETH combines SoV-like anchoring through ETF holdings and native staking, with productive use across DeFi. A notable share of ETH participates in collateralized lending, liquidity pools, perpetuals, restaking, and LST/LRT structures.

Ether also continues to leave exchanges for institutional wrappers and long-term custody. Ethereum’s share on exchanges shows a steeper decline, with ETF adoption and DAT accumulation draining ETH’s balance on exchanges. ETFs now hold 5.24% of ETH’s supply, while DATs have accelerated this year to approximately 4.9% of ETH’s supply. 

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.