Ethereum’s exchange supply has dropped to a record low of 3.49%, with another 1.16% of tokens moved off trading venues since June 1. The decline reflects growing use in staking and DeFi, with roughly 35% of ETH staked and about $53 billion locked in DeFi protocols. Despite a recent price pullback from $2,800 toward $2,660, network activity remains strong as Gas Used rose 0.26% and Priority Fees surged 26.74% to around $464,000, signaling continued demand for block space.
Ethereum’s short-term momentum has faded after a rally that pushed prices from roughly $1,900 to $2,800 within a month, with ETH now trading near $2,660. The network itself has not shown a major decline in activity during this correction.
Exchange balances for ETH have fallen to their lowest levels since the asset’s early years, with only 3.49% now held on tracked platforms. According to Santiment, the shrinking supply is largely driven by increased use in staking and DeFi.
An estimated 35% of Ethereum is staked, and roughly $53 billion remains locked across DeFi protocols. Long-term holders are also moving coins away from exchange order books, with BitMine alone staking more than 5 million ETH this month. If demand rises while exchange supply stays limited, buyers could face fewer readily available coins.
CryptoQuant reported that Gas Used currently sits at around 217.1 billion, up 0.26%, indicating demand for block space has not fallen sharply. Priority Fees have climbed more decisively, reaching nearly $464,000, a 26.74% increase over the past day.
Priority Fees are payments users make to accelerate transaction processing, and the sharp rise shows greater competition for space. Blocks Mined remain almost unchanged at roughly 7,147, meaning the fee increase stems from stronger demand per block rather than higher block production.
The $2,600 to $2,650 area stands as an important support zone for Ethereum. If ETH holds this level while network activity and Priority Fees stay elevated, the asset could potentially move back toward the $2,700 to $2,800 range.
