Tag: exchange supply

  • BitMine’s Ethereum Holdings Approach 5% as Exchange Supply Slumps to 11-Year Low

    BitMine’s Ethereum Holdings Approach 5% as Exchange Supply Slumps to 11-Year Low

    BitMine Expands Ethereum Treasury, Eyes 5% Milestone

    BitMine Immersion Technologies has purchased an additional 27,180 Ether (ETH), worth approximately $68 million, boosting its total Ethereum reserves to 5.96 million ETH. This represents 4.9% of the total circulating supply, inching the company closer to its self-imposed 5% target—dubbed the “Alchemy of 5%.”

    Weekly Accumulation Strategy

    Since launching its crypto strategy on June 30, 2025, BitMine has executed weekly Ethereum buys. The latest transaction was roughly in line with the prior week’s $69 million acquisition. The company now needs only about 144,000 more ETH to cross the 5% threshold.

    BitMine already holds the largest Ethereum treasury of any company globally and ranks second among all corporate crypto treasuries, trailing only Strategy Inc., which holds 845,080 BTC valued at about $71 billion.

    Staking Generates Recurring Revenue

    BitMine’s total crypto portfolio is valued at $15.8 billion, comprising 5.96 million ETH, 212 BTC, and $549 million in cash and securities. The company also holds equity stakes in Beast Industries and Eightco Holdings, valued at roughly $180 million and $98 million, respectively.

    Approximately 85% of BitMine’s ETH (5,067,309 ETH) is currently staked, yielding a seven-day annualized return of 2.62%. That translates to annualized staking revenue of $334 million. Chairman Tom Lee has indicated that if all ETH were staked, revenue could reach $392 million annually. BitMine uses its institutional validation platform, MAVAN, which launched in early 2026.

    This scale makes BitMine a major Ethereum validator, but it also raises concerns about concentration risk, given that the firm aims to control nearly 5% of the total supply.

    Exchange Supply Hits Multi-Year Low

    Ethereum balances on centralized exchanges have fallen to just 14.88 million ETH as of September 8—the lowest level in 11 years, according to CryptoQuant. Since July 2025, over 6.42 million ETH has left exchange wallets. While reduced exchange supply suggests fewer tokens are readily available for sale, it does not guarantee higher prices. Tokens can return from private wallets or staking platforms, and the ultimate price impact depends on whether demand rises in tandem.

    Market participants are closely monitoring spot volumes, ETF flows, whale activity, and price momentum as signals of genuine demand. If buying pressure increases while exchange supply remains constrained, Ethereum could see upward price support. Conversely, weak demand could render the supply drop irrelevant.

  • Bitcoin Exchange Supply Drops to Multi-Year Lows as ETFs and Institutional Custody Shift Market Dynamics

    Bitcoin Exchange Supply Drops to Multi-Year Lows as ETFs and Institutional Custody Shift Market Dynamics

    Bitcoin exchange balances have fallen to levels not seen in years, but analysts warn that the traditional bullish interpretation of this trend no longer holds the same weight. According to blockchain analytics firm Santiment, the amount of Bitcoin held on exchanges has dropped to just 6.6% of its circulating supply, while Ether stands at 4.3%—the lowest since 2017 and 2015, respectively.

    Industry executives point to the rise of institutional custody, spot exchange-traded funds (ETFs), and decentralized finance (DeFi) as key factors reshaping how digital assets move. In the past, declining exchange reserves signaled that investors were moving coins into self-custody, reducing immediate selling pressure and often preceding price rallies. Today, the picture is more complex.

    Mark Zalan, CEO of GoMining, noted that prolonged declines in exchange supply have historically appeared before multi-quarter bull markets, but he cautioned that accurate timing remains uncertain. Meanwhile, Eneko Knorr, CEO of Stabolut, explained that many assets now flow into staking platforms, DeFi protocols, and institutional custody rather than remaining on exchanges. Bitcoin withdrawn from exchanges often becomes wrapped assets like WBTC, used as collateral or lent across decentralized markets.

    Spot Bitcoin ETFs further complicate the narrative. When demand rises, ETF issuers purchase Bitcoin and place it with custodians such as Coinbase Custody, Fidelity Digital Assets, and BitGo. Investors then trade ETF shares on regulated exchanges while the underlying Bitcoin stays off exchange wallets. Currently, U.S. spot Bitcoin ETFs hold over $73 billion in net assets (more than 641,400 BTC), and Ether ETFs manage roughly $13.7 billion (about 7.7 million ETH).

    Ben Nadareski, CEO of Solstice, described lower exchange balances as the end of the exchange-custody era rather than a simple bullish indicator. Assets are now moving toward regulated custodians or productive on-chain positions. Historical data also shows that low exchange reserves do not guarantee higher prices—during 2022, reserves stayed relatively low while Bitcoin prices still declined sharply.

    Despite these shifts, accumulation continues across multiple sectors. Public companies now hold about 1,264,579 BTC, private companies own 281,752 BTC, and government entities control 649,954 BTC. DeFi and related protocols hold 369,595 BTC, while ETFs and exchanges account for 1,622,533 BTC. Nearly seven million Bitcoins remain in dormant wallets, meaning about 56.5% of the circulating supply (roughly 11.2 million BTC) sits outside active trading.

    In summary, while Bitcoin’s exchange supply remains near historic lows, the indicator no longer provides a straightforward bullish signal. The market has matured, and investors must consider ETFs, institutional custody, and DeFi to understand true supply dynamics.

  • XRP Surges Past $1.15 Amid 62% Volume Spike and Falling Exchange Supply

    XRP Surges Past $1.15 Amid 62% Volume Spike and Falling Exchange Supply

    XRP rebounded sharply this week, climbing back above $1.15 after finding solid support near the $1.03 level. The recovery was fueled by a dramatic 62% surge in daily trading volume, which reached $1.8 billion, signaling renewed trader interest and liquidity in the market.

    Trading Activity Accelerates as XRP Recovers

    The latest rebound follows a challenging June for XRP holders, during which the token retreated from February highs above $1.55 to a low between $1.00 and $1.04 by late June. That decline marked one of the largest holder drawdowns in over a decade. Despite the price drop, institutional demand for XRP-linked spot exchange-traded funds (ETFs) weakened, with net inflows falling from $132 million in May to just $59 million in June — a 55% monthly decline.

    However, on-chain metrics painted a more optimistic picture. According to Santiment, daily active addresses on the XRP Ledger climbed to their highest level since February, when XRP was trading between $1.47 and $1.54. This suggests that retail and network activity is on the rise even as institutional inflows cool.

    Binance Supply Shrinks While Futures Reset

    Data from CryptoQuant researcher ArabxChain showed that the XRP Binance Scarcity Index reached 0.77, its highest reading in more than two years. Binance’s XRP reserves have fallen by roughly 20% since November 2024, dropping from around 3.27 billion tokens to nearly 2.6 billion. Exchange holdings also declined from approximately 2.8 billion in May to 2.6 billion in early July, indicating tightening supply.

    In addition to lower exchange balances, analyst ChartNerd highlighted what was described as XRP’s “3rd Retest” on social media platform X, identifying the pattern as a favorable entry area for traders building positions through technical analysis.

    Technical Levels Remain in Focus

    Futures market data from Coinglass revealed that funding rates turned deeply negative between June 26 and June 28 as XRP hit its recent low. This positioning set the stage for a short squeeze, which subsequently pushed XRP toward $1.13 as funding rates returned to slightly positive territory, signaling more balanced futures positioning.

    Looking ahead, immediate resistance sits near $1.20, a level that capped the mid-June recovery attempt. A daily close above that threshold would expose the $1.35 to $1.40 range, representing roughly 22% upside from current prices. The daily Relative Strength Index (RSI) remains near 55, indicating room for further gains before reaching overbought conditions. The 200-day Exponential Moving Average (EMA) stands near $1.50, while a move below $1.00 would invalidate the current recovery structure.

    Notably, XRP trading volume recently surpassed that of Bitcoin on South Korean exchange Upbit, adding another data point as traders watch whether stronger demand continues to develop.

    What’s Next?

    XRP has successfully recovered above $1.15 after finding support near $1.03, supported by increased trading volume and strengthening XRP Ledger activity. Meanwhile, declining reserves on Binance and improving futures positioning reflect shifting market dynamics. Investors will now be watching closely to see whether XRP can break decisively above the $1.20 resistance level in the coming sessions.