Supply Crunch in September? Corporations Drain ETH Reserves from Exchanges to Historic Lows

• Why Is Ethereum Facing a Historic Supply Shock?
• Who’s Hoarding ETH? The Corporate Players Driving Scarcity
• How Does Staking and EIP-1559 Tighten Supply Further?
• What’s the Alternative for DeFi Investors Amid ETH Scarcity?
• FAQs: Ethereum’s Supply Crisis Explained

Ethereum (ETH) is entering September 2025 under intense supply pressure, with institutional buying and ETF demand driving exchange reserves to multi-year lows. Corporate treasuries, staking platforms, and ETFs now hold billions in ETH, creating artificial scarcity. With reserves nearing historic lows, even modest buying could trigger a full-blown supply crisis. This article dives into the data, trends, and potential price implications—backed by on-chain metrics and expert insights.

Why Is Ethereum Facing a Historic Supply Shock?

Ethereum’s circulating supply is shrinking at an alarming rate as corporations, institutions, and ETFs aggressively accumulate the asset. crypto exchanges now hold just 17.2M ETH—a stark contrast to five years ago when 15% of ETH’s total supply was available for trading. Today, that figure has plummeted to 5%, signaling a seismic shift toward long-term holding over short-term speculation.(Source: CryptoQuant)

Who’s Hoarding ETH? The Corporate Players Driving Scarcity

Companies like BitMine Immersion (aiming for 5% of ETH’s total supply), SharpLink Gaming, and EtherMachine are leading the charge. Publicly traded firms—including Coinbase, Bit Digital, and BTCS—collectively hold over 1M ETH, much of it locked in staking protocols. Meanwhile, ETH ETFs have exploded in popularity, attracting $9B in inflows over two months, with daily entries recently hitting $296M. Total ETF assets now exceed $21B, per DeFiLlama.

How Does Staking and EIP-1559 Tighten Supply Further?

With 30% of ETH staked and EIP-1559 burning tokens daily, Ethereum’s inflation is effectively neutralized. On-chain data shows validator queues locking another 831K ETH, while "whales" move 150K+ ETH to cold storage in single transactions. If this trend continues through September, ETH—currently trading NEAR $4,300—could surge past $4,900, potentially setting a new all-time high.(Source: Ultrasound.money)

What’s the Alternative for DeFi Investors Amid ETH Scarcity?

Enter bitcoin Hyper—a Layer-2 solution merging Bitcoin’s security with Ethereum’s DeFi capabilities. Its native token, HYPER, is in presale at $0.012855 and has raised $13.8M, offering 80% APY staking rewards. By enabling real-world asset (RWA) integration—think real estate and collectibles—on Bitcoin’s network, it’s positioning itself as a bridge between meme culture and blockchain utility.

FAQs: Ethereum’s Supply Crisis Explained

How low are ETH exchange reserves compared to past years?

Reserves have dropped to 17.2M ETH (5% of supply), down from ~15% five years ago—a 66% reduction in liquid supply.

Which corporations hold the most ETH?

BitMine Immersion, Coinbase, and Bit Digital lead, with public companies collectively holding 1M+ ETH, mostly staked.

Could ETH hit $4,900 by October 2025?

If current accumulation trends persist, analysts like those at BTCC suggest a supply-driven rally is plausible, though market volatility remains a factor.