Ethereum Holdings Decline as Supply Lockup Increases

Key Points:
  • 45% of Ethereum is now locked, impacting trade ease.
  • Over 6.1 million ETH held by publicly listed companies.
  • Exchange-traded funds account for about 10% of Ethereum supply.

Sygnum’s Q1 2026 investment outlook highlights ETH supply dynamics with 45% locked and a 14.5% decrease in exchange-held ETH, potentially affecting market volatility if demand increases.

Reduced ETH supply against potential demand rises could trigger price fluctuations, impacting investor strategies and market behavior in the cryptocurrency sector.

Key Developments, Impact, and Reactions

According to TheDefiant, Sygnum’s report highlights that approximately 45% of Ethereum is locked, and exchange holdings decreased by 14.5% this quarter. Publicly listed companies hold over 6.1 million ETH. Exchange-traded funds account for about 10% of the supply. If demand grows, price volatility is likely.

Fewer Ethereum holdings on exchanges suggest increased long-term investments. ETFs and public entities holding significant amounts also showcase institutions’ reliance on Ethereum’s future.

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“The shift in Ethereum’s locked supply dynamics is a pivotal moment reflecting growing market maturity,” shared a commentator on TheDefiant.

Ethereum Market Sees Shift with Declining Exchange Holdings

Did you know? Ethereum’s locked supply has reached a point that has not been seen in previous years, marking a potential new phase in decentralized finance (DeFi) developments.

Ethereum (ETH) currently trades at $2,309.53 with a circulating supply of 120,694 million. The market dominance is 10.73%, down 8.29% in 24 hours and 35.47% over 90 days. CoinMarketCap’s data shows a recent surge in trading volume by 45.42%.

ethereum-daily-chart-2717
Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 16:09 UTC on February 1, 2026. Source: CoinMarketCap

The Coincu research team suggests supply trends may cause regulatory or technological responses affecting Ethereum’s role in DeFi. Historical trends indicate potential for increased institutional interest as markets acclimate to reduced availability and volatility pressures.

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