Analysts: ETH holdings on CEX platforms have fallen to a record low of 8.8%, and tight supply may drive prices up.

According to a report by Cointelegraph, analyst Milk Road stated that the amount of ETH stored on centralized cryptocurrency exchanges has fallen to unprecedented lows, potentially leading to supply shortages. According to Glassnode data, ETH holdings on exchanges are at a low of 8.8%, essentially the lowest level since the network launched in mid-2015. The amount of ETH on exchanges has decreased by 43% since the beginning of July, coinciding with an accelerated increase in Digital Asset Treasury (DAT) purchases. In contrast, Bitcoin holdings on exchanges are higher at 14.7%. Milk Road believes that ETH is being pulled into areas that are difficult to sell, such as staking, restaking, Layer 2 network activity, DAT, collateralized cycles, and long-term custody, suggesting that supply tightening could drive up prices. "Currently, market sentiment is low, but market sentiment doesn't determine supply. The supply of ETH is tightening covertly, and the market is deciding the next move. When this gap disappears, the price will rise."