Tuesday, November 30, 2021

The number of BTC held on exchanges crashed 20% in 12 months

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Information from on-chain crypto info aggregator Glassnode signifies the variety of Bitcoin held on centralized exchanges has fallen by roughly 20% in 12 months.

The information suggests traders are accumulating BTC and withdrawing them from exchanges into chilly storage, making a provide crunch.

On March 6, Glassnode additionally shared data revealing that cash bought throughout 2021 weren’t moved at a loss in the course of the late February dip, in keeping with on-chain evaluation.

The agency’s “Hodlwaves” metric, which measures the time since coins were last moved on-chain, additionally factors to rising accumulation exercise.  Hodlwaves information revealed on Feb. 22 indicated 57% of Bitcoin’s provide has not moved in multiple 12 months. Nonetheless, greater than one-third of mentioned BTC haven’t moved in additional than 5 years, suggesting that a good portion of the cash could have been misplaced.

The rising reputation of decentralized exchanges and DeFi yield protocols may additionally be driving the diminishing provide of BTC on centralized exchanges.

Evidencing robust demand for Bitcoin within the DeFi ecosystem, the entire worth locked, or TVL, of BTC tokenization protocol Wrapped Bitcoin has elevated by greater than $1 billion because the begin of March, in keeping with DeFi Llama.

Wrapped Bitcoin TVL: DeFi Llama