The number of non-empty wallets on Ethereum rises while the supply on exchanges dries out, as the staking interest blows up. However, despite the draining supply of ETH, the token still continues to trade sideways.
The number of wallets holding Ethereum, or the number of non-empty wallets on the Ethereum network, drastically increased to 175.5M. In 2026 alone, the wallet count spiked by more than 5 million, representing an increase of 3%. When the wallet count spiked, the Ethereum supply on exchanges had drained to 8 million, while the staking activity had drastically increased.
Wallets count not equal to unique users
https://altcoindesk.com/news/altcoins/ethereum/ethereum-supply-on-exchanges-hits-lowest-level-in-nearly-a-decade/article-21479/When putting the whole context together, the supply on exchange is draining out as the traders are either transferring their ETH into wallets or locking it up in the protocol. More ETH is being held and staked, less is on exchanges, and wallets are filling up—all signs point to rising scarcity, which is bullish for ETH price.
Ethereum is clearly seeing steady growth, even while prices move sideways. More wallets are being created and staying active, but it’s important to remember that wallet counts don’t equal unique users; one person can hold many wallets.
Analyst Lavneet Bansal
Moreover, Bansal mentioned that the cost of transacting on the Ethereum mainnet reducing makes it practical to use again. And this is pushing more activity back to the mainnet, especially for simple transfers and stablecoin payments.
Despite all the supply crunches on exchanges, the ETH prices have still been moving sideways. As shown in the chart below, there was a point when ETH crashed below the lower trendline of the ascending triangle.
ETH prices stagnate with geopolitical tension
However, it once again regained some momentum and is back inside the pattern. The main reason for the prices to not spike is the prevailing geopolitical situation. With tariffs, wars, and protests going on around the world, volatility is very high. In such uncertain situations, investors are looking for safe havens. And gold has been the go-to commodity.
However, analysts believe when the dust settles, the investors will once again rotate their funds into risk assets, and cryptocurrencies will boom again. When that happens, ETH will start to rally again and test the $3,000 resistance level, which is a psychological level.
