- Ethereum stablecoin supply reached all time high of $168B with strong institutional demand.
- Exchange reserves dropped 20.4% in four months, which indicates heavy accumulation.
- Ethereum trades near $4,628 with bullish momentum toward $4,765 and $4,956 levels.
Ethereum’s stablecoin supply has soared to $168 billion, marking an all-time high and more than doubling since January 2024, according to analyst CryptoGoos. Data posted on X confirms the milestone, positioning Ethereum as the leading settlement layer for dollar-pegged assets. The surge coincides with broader institutional demand and growing integration of stablecoins into decentralized finance (DeFi).
Between 2018 and 2020, growth was slow, with supply stagnant below $10 billion. Then came the record year of 2021, with issuance topping $100 billion, only to drop to $80 billion in 2023. That was the year when stablecoin issuance saw a resurgence, pushing past the $150 billion mark and likely on its path to touch $200 billion. A complete rebound indicates renewed adoption after a consolidation period.
Vincent Liu, CIO of Kronos Research, said, “Ethereum’s stablecoin supply reaching an all-time high is a defining moment, marking the transition from a speculative asset to a base for dollarization within DeFi ecosystems and indicating that liquidity is nowadays sufficiently high to absorb volatility and provide support during bigger dips.”
Nick Ruck, LVRG Research director, underlined, “That record supply of stablecoins on Ethereum translates to a massive injection of institutional liquidity and growing trust in its infrastructure as the base layer for DeFi.” He further added, “The growth is primarily powered by the expansion of USDC and USDT, signposts of an increasingly greater institutional acceptance, which will certainly ramp up demand for active DeFi involvement and possible appreciation of ETH to accommodate such demand for the ecosystem.”
Technical Chart Signals Bullish Path Ahead
As of press time, Ethereum is trading at $4,628.51 and is recording a 0.52% daily gain. The daily chart illustrates a cup-shaped recovery pattern, with support established at $4,064.48. Fibonacci retracement levels present key zones. The 0.236 retracement at $4,275.06 was defended, while ETH cleared the 0.5 level at $4,510.63. Ethereum is now testing resistance near the 0.786 level at $4,765.83. $4,956.78 stands as the extension target where bulls would want to carve out new highs.
Momentum indicators support this bullish structure. MACD’s line at 88.70 remains above the signal line placed at 70.84, with a positive histogram of 17.86, showing considerable momentum. RSI has a value of 59.70, mid-range, implying enough room before it hits overbought territory. Further suggesting the possibility of an advance toward the $4,765–$4,956 area for ETH, market sentiment remains bullish, with traders keeping a watchful eye on the breakout.
Related: Upbit Unveils Giwa: Ethereum Layer-2 with 1-Second Block Times
Exchange Reserves Decline as Accumulation Rises
Ethereum’s exchange reserves dropped sharply by 20.4% in four months, data from CryptoRover shows. Balances fell from 21.5 million ETH to 17.1 million ETH, the lowest level in years.
The reduction coincided with ETH’s rally to $4,600. With the depletion in reserves since May 2025, prices moved upward, thereby hinting at accumulation by long-term holders. Data suggests that institutional wallets are withdrawing ETH from exchanges for cold storage.
With fewer numbers of coins available for trading, the supply-demand balance is tilting. Demand comes under pressure as liquidity grows thinner. CryptoRover said, “Big institutions aren’t planning to leave any for you,” giving an idea of the huge institutional movement.
Together, the new record for stablecoin supply, bullish price structure, and declining exchange balances set a stage for Ethereum as a market increasingly shaped by institutional flows. Will this good combination of lesser supply, strong demand, and deep liquidity trigger the next big rally for Ethereum?
