Glassnode Report Shows More ETH Is Migrating From CEX To DEX
ETH kicked off 2021 around $740, looking back at that figure to hitting an all time high of over $4k has been a significant jump in price which doesn't look like it has run out momentum yet prompting a poll I came across "will Ethereum flip Bitcoin soon"? probably not those exact words but that was the question conveyed by the poll which my response was no and surprisingly majority responded yes.
So what's been driving the price of Ethereum despite its high gas fees? Mostly DeFi I will say. DeFi surfaced last year 2020 and has only continue to grow from there, we are basically seeing DeFi as a form of investment that is not just a hype but here for the long term (the way I see it) and with Ethereum being the major host of DeFi, probably that is changing as more DeFi projects migrates to BSC, the demand for ETH keeps rising but what interests me most is Glassnode's finding.
Glassnode reported that the amount of ETH on exchanges has declined by 30% over the past nine months, falling from 19 million to around 13 million, or 12% of the supply today. It’s the lowest balance on centralized exchanges in almost two years.
Conversely almost 23% of the supply, or 26 million ETH, is now held in DeFi and various other smart contracts.
Source
The less ETH or any token on centralized exchanges for that matter appeals to as DEXs are being utilized instead with the major catalyst to this result being DeFi, this in turns makes users have control over their funds utilizing smart contract DeFi platforms. If this can be replicated with other altcoins using more of DEXs over CEXs it will be great.
KYC eliminated, less data in the hands of centralized exchanges, you can't eliminate rug pulls on most DeFi platforms but that leaves an individual to do his or her research and CEOs running off with users funds as a risk of using centralized exchanges will be eliminated.
As DEXs becomes easier to use, we should be seeing higher numbers moving off centralized exchanges.
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People are so bullish on ETH, there is even talk of Eth flippening bitcoin and being the number one crypto in terms of market cap. Pretty bullish if Eth becomes the backbone of borrowing, earning, staking ,lending and the like, only time will tell. Thank you for sharing :}
The crypto space has its way of telling the story, ETH flipping BTC looks a long streach for Ethereum but can't be rulled out and especially if ETH 2.0 becomes a success
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