Ethereum’s Historic Supply Crunch: A Bullish Signal for Long-Term Holders
As of May 22, 2025, Ethereum’s exchange supply has reached a record low of 4.9%, marking a significant shift in investor behavior. This development, coupled with strong on-chain metrics, suggests growing confidence in ETH’s long-term value proposition. Below is a detailed analysis of this pivotal moment for the second-largest cryptocurrency.
Ethereum Exchange Supply Drops To Record Low Of 4.9%
Ethereum’s supply on centralized exchanges has plummeted to an all-time low of 4.9%, signaling a potential shift in investor behavior. On-chain data from Santiment reveals a sustained downtrend, with holders withdrawing ETH from trading platforms at an accelerating pace.
The metric, which tracks the percentage of total circulating supply held in exchange wallets, serves as a key indicator of market sentiment. A declining trend suggests reduced immediate selling pressure, often preceding bullish price action. Ethereum’s exchange reserves have now reached uncharted territory, reflecting growing conviction among long-term holders.
Altcoin Withdrawals Accelerate on Binance as Accumulation Trend Builds
Small-cap altcoins are experiencing consistent outflows from Binance as users increasingly shift assets to self-custody. Ethereum, despite its large-cap status, has joined the list of top withdrawn tokens, signaling a broader market trend toward holding assets off exchanges.
On-chain data reveals sustained outflows between March and May 2025, with reduced exchange balances suggesting lower immediate sell pressure but potential for future volatility. The movement underscores growing confidence in altcoins as accumulation patterns emerge.
Ethereum Cofounder Jeffrey Wilcke Moves $262 Million in ETH to Kraken Amid Market Rally
Ethereum co-founder Jeffrey Wilcke has executed a high-profile transfer of 105,736 ETH ($262 million) to Kraken, marking one of the largest single transactions by a founding team member this year. The move coincides with a sustained upward trend in crypto markets, sparking speculation about profit-taking strategies among early adopters.
Blockchain analytics platform Arkham first flagged the transaction, which represents a portion of Wilcke’s known holdings. Market observers note the timing aligns with ETH’s 30-day rally, though the exact motive remains unclear—whether for liquidation, staking, or exchange-based DeFi strategies.
Ethereum (ETH) Shows Bullish Momentum Amid Price Surge
Ethereum’s recent performance suggests a potential breakout from its prolonged stagnation. The asset has gained 55% over the past month, trading at $2,560.16 at press time—sparking speculation of an imminent rally toward $3,000.
Despite failing to reclaim its 2021 all-time high of $4,891.70, ETH’s network activity indicates growing investor confidence. The altcoin’s 90,313% cumulative growth since 2015 underscores its resilience, though recent price action finally delivers the volatility long-awaited by holders.
Ethereum Sees $3.8B Inflows Despite Stalled User Growth Post-Pectra Upgrade
Ethereum’s LAYER 1 network activity remains sluggish despite the successful Pectra upgrade, with Glassnode data showing no significant influx of new or returning users. Existing users, however, are demonstrating stronger loyalty, evidenced by an 8.5% decline in churn rates.
Layer 2 solutions tell a different story. Activity across Base, Arbitrum One, and OP Mainnet surged nearly 50% in May, rebounding from 8.7 million users. This divergence highlights Ethereum’s evolving ecosystem dynamics, where scaling solutions gain traction even as the mainnet stagnates.
Market positioning remains bullish mid-term, though short-term profit-taking risks persist. The $3.8 billion inflow signals strong institutional confidence, creating an intriguing disconnect between capital movements and on-chain metrics.
How AI-Driven DeFi Transforms Blockchain Activity into Investment Strategy
Artificial intelligence is revolutionizing decentralized finance by optimizing smart contracts, refining risk models, and automating trading strategies. Machine learning algorithms process vast streams of blockchain data to generate actionable insights, while AI-powered DAOs introduce dynamic governance mechanisms.
The AdEx platform’s AURA Demo exemplifies this transformation—an advanced AI agent tracking ethereum and Layer 2 activity. The system analyzes transactions, risk profiles, and capital flows to execute trades and identify opportunities ranging from NFT minting to airdrop harvesting.
