Exchange Reserves Hit 8-Year Low as Staking Locks 37M ETH
On-chain data as of March 24, 2026, reveals a significant tightening of Ethereum's liquid supply. The quantity of ETH held on centralized exchanges has plummeted to levels not seen since 2016, indicating a long-term holding trend among investors. This decline in available supply is compounded by a massive increase in staking activity, with over 37 million ETH now locked in staking contracts. The combined effect removes a substantial portion of ETH from the open market, creating the conditions for a supply squeeze where even steady demand can exert significant upward pressure on price.
BitMine Accumulates 4.66M ETH, Cornering 3.8% of Supply
Institutional accumulation is a primary driver behind Ethereum's shrinking available supply. BitMine Immersion Technologies, led by Chairman Tom Lee, has aggressively expanded its treasury, acquiring 65,341 ETH in a single week. The firm now holds over 4.66 million ETH, valued at approximately $10.1 billion, which represents 3.86% of the entire circulating supply. Despite sitting on an estimated $7 billion unrealized loss, Lee remains confident, stating that the market is in the "final stages of the 'mini-crypto winter'." A substantial portion of BitMine's holdings, 3,142,291 ETH, is also staked, further contributing to supply scarcity while generating yield for the firm.
Institutions Drive 'Second Wave' Demand for Ethereum Yield
The large-scale staking and holding patterns reflect a strategic shift among institutional investors. According to Coinbase's head of institutional, Brett Tejpaul, a "second wave" of institutional capital is moving beyond simple price speculation and is now actively seeking sustainable yield. This evolution in strategy is driving demand for products like staked-ether ETFs and other on-chain vehicles that generate income from digital assets. Institutions are increasingly using blockchain infrastructure for its efficiency in payments and settlement, viewing assets like Ethereum not just as a speculative bet but as a productive, yield-bearing component of their portfolios. This fundamental demand for yield is a key factor solidifying the long-term reduction in Ethereum's freely traded supply.
