Kataryna Habeliia November 20, 2020
Ethereum Holders Prefer DeFi Services Over Centralized Exchanges
The number of Ethereum on centralized exchanges has been steadily declining. Against this backdrop, the share of supply blocked in the DeFi sector is growing. This is evidenced by data from Glassnode.
The chart below shows the rapid flow of funds into smart contracts for decentralized applications (dapps) that began in June. The outflow of ETH from exchanges has been observed since February.
In recent months, the share of Ethereum supply on dapps has grown from 11% to 17%. The number of coins on the exchanges has decreased from 19,000 ETH to 15,500 ETH.
Speaking to Decrypt, Bityond founder Pedro Febrero stated the following:
“I suspect the same is happening as with Bitcoin: more and more coins are being withdrawn from exchanges to private wallets. Most likely, users are not interested in short-term sales.”
Investors’ focus on medium- and long-term savings in the DeFi sector instead of speculative deals is likely to drive the price of the second-largest cryptocurrency by market cap. ETH price tested the $ 500 mark today.
Against the background of positive price dynamics, the Ethereum hash rate updated its all-time high above 260 Th / S.
We will remind, recently Vitalik Buterin said that soon there will be noticeable improvements in the parameters of the Ethereum network.
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