(BTC) Bitcoin News TodayAltcoinCryptocurrencyDeFiEthereum (ETH)Exchanges & BrokersNews

Glassnode: The Amount Of ETH Locked In DeFi Is Two Times Greater Than On Crypto Exchanges

Ethereum has been absolutely exploding in terms of price, usage and popularity lately. As of the time of this writing, ETH’s price is $3,445, which is a 0.8% increase within the last 24 hours. It is the second-biggest cryptocurrency in terms of market cap, right behind Bitcoin

In recent news, while it is true that the overall amount of Ethereum that is locked within DeFi (decentralized finance) protocols has increased by 75% ever since the beginning of last year, the total amount of Ether that is being held on various centralized exchanges, on the other hand, has in fact decreased by 30% during the same time period. What this means is that ETH is being locked away in DeFi contracts at quite an alarming rate in 2021, whereas the overall amount that is held on various centralized exchanges has been steadily and continuously falling.

ETH on centralized exchanges decreased by over a quarter

Glassnode, an on-chain data analytics and information provider, had displayed via a chart the comparison of the amount of ETH that had been placed in various ETH smart contracts to the overall amount of Ether that was being stored on various centralized exchanges over the course of the previous 17 months. The chart noted that ever since the beginning of last year, the amount on the centralized exchanges had actually decreased by over a quarter, from approximately 17% to about 12%.

📰 Also read:  Court Hands Florida Man a 20-Year Jail Term Over Crypto Ponzi Scheme

Furthermore, during this same time, the amount of ETH that had been locked in the smart contracts had actually managed to rise by three quarters, and in percentage terms, this would be about 13% to just below 23%. This is indicative that decentralized finance has gradually chipped away at the profits generated by the abovementioned centralized exchanges resulting from ETH trading fees.

ETH to overtake BTC?

DeFi Llama, a cryptocurrency data and information aggregator, has estimated that just over 8 million coins (about 7%) of the circulating ETH has been locked in BSC protocols, whereas 286,153 ETH (0.25%) has been on Solana, and lastly, 103,902 Ether (0.09%) has been allocated to Avalanche. 2.8 million (1.6%) had been locked in various ‘other’ networks.

Due to the abovementioned information and analysis, as well as the fact that ETH’s price had managed to reach over the $3,500 mark, experts are having renewed conversations regarding whether ETH may actually be able to overtake BTC in the future. The fact that ETH future volumes had even temporarily outpaced that of the Bitcoin markets only added more proof to this discussion.

📰 Also read:  Report: 'Bitcoin' Google Search Volume Declines, While 'Meme Coin' Increases

Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  WiseBit.AI Review – Is WiseBit AI Scam or Legit? (Complete WiseBitAI review)

Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content