Sygnum: As Ethereum's supply tightens, 45% of ETH is now locked, reducing circulating supply and potentially impacting market liquidity.

ChainCatcher reports that, according to TheDefiant, Sygnum stated in its Q1 2026 investment outlook that approximately 45% of ETH is currently locked or difficult to sell, with the amount of ETH held by exchanges decreasing by 14.5% this quarter, continuing a multi-year downward trend.

Meanwhile, exchange-traded funds (ETFs) currently hold about 10% of the total ETH, while publicly listed companies hold over 61 million ETH, accounting for approximately 5% of the circulating supply. The report notes that a reduction in supply could lead to greater price volatility, but this only occurs if demand increases.