Recent data shows that the circulating supply of Ethereum on exchanges has dropped to its lowest level in the past three years, sparking widespread discussion in the market about its price trends. As of September 6, 2025, the number of ETH held by centralized exchanges is approximately 17.4 million, a decrease of nearly 10.7 million compared to September 2022, marking a significant decline.

This supply contraction is mainly due to two factors: the launch of spot Ethereum ETFs and the accumulation of corporate funds. Since July 2024, spot Ethereum ETF products have attracted over $13 billion in net inflows, with BlackRock's iShares Ethereum ETF standing out, having accumulated $16 billion in assets under management, making it one of the fastest-growing ETFs. In just July 2025, the inflow of funds into ETFs reached a peak of $5.4 billion, while the total net inflow of all spot ETH ETFs exceeded $10 billion during the period from June to August.

It is worth noting that over the past three months, approximately 2.5 million ETH has flowed out of exchanges, causing the ETH reserves of trading platforms to drop by 38% from the peak of 28.8 million in 2022. This ongoing trend of decreasing supply has sparked speculation in the market about a possible rebound in the price of Ethereum, especially against the backdrop of growing demand from institutional investors and large holders.

However, although supply contraction is usually seen as a positive factor, market participants still need to carefully assess its actual impact on the price of Ethereum. While changes in supply and demand dynamics are important, they are not the only factors determining the price trends of cryptocurrencies. Regulatory environment, technological developments, macroeconomic conditions, and many other factors may also have a significant impact on Ethereum's market performance.

With the increasing participation of institutions and the evolution of market structure, the Ethereum ecosystem is undergoing profound changes. Investors and analysts need to closely monitor these changes, assess their impact on Ethereum's long-term value proposition, while also considering broader market dynamics and potential risks.