Ethereum’s exchange supply has reached record lows as of August 2025, with only 12% held in exchanges globally, driving predictions of a price surge toward $6,000.
The decline in supply, coupled with increased ETF investments, underscores growing institutional interest in Ethereum, potentially sparking a new bull run amid global market speculation.
Ethereum Exchange Supply Hits Historic 12% Low
Ethereum’s exchange supply plunged to a historic low, with only 12% of its total circulating on exchanges. This decline has sparked bullish price targets as analysts and institutional voices predict a potential ascent towards $6,000.
Key players such as ETF issuers and Ethereum treasury companies are intensifying their buying activities. Vitalik Buterin has not issued recent statements, though he continues to emphasize the importance of staking and protocol upgrades.
U.S. Credit Policy Shifts Bolster Ethereum Optimism
Ethereum’s supply reduction influences a broad range of crypto assets, prompting speculation of an “Altseason.” Key figures like Arthur Hayes highlight macro factors like U.S. credit policy shifts as potential catalysts for price growth.
“A shift in U.S. policy towards credit expansion would bring a lot of liquidity, combined with Western institutions regaining interest in Ethereum, these macro factors would be key catalysts for driving ETH prices higher.” — Arthur Hayes, Former CEO, BitMEX
Institutional interest remains high, with record ETF inflows bolstering ETH prices. Historical trends suggest supply squeezes often precede bull runs; events in 2020–2021 saw similar dynamics in Bitcoin. On-chain metrics support the strong demand narrative.
Past Supply Drops Drive Ethereum Price Projections
Previous supply drops, similar to Bitcoin’s rallies, led to price increases due to institutional acceptance and reduced exchange supply. This pattern now repeats with Ethereum, leading analysts to predict a similar bullish outcome.
Experts predict Ethereum’s price to reach between $6,000 and $7,000 by the end of 2025. Arthur Hayes remarks that U.S. liquidity shifts could drive Ethereum’s value higher. Historical data supports these projections of future price gains.
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