Glassnode: Ethereum holders favour DeFi services over centralized exchanges

The amount of Ethereum on centralized exchanges is steadily declining. Against this backdrop, the share of supply locked in the DeFi sector is rising. This is evidenced by data from Glassnode.

In the chart below, a rapid inflow into the smart contracts of decentralised applications (dapps) began in June. The outflow of ETH from exchanges has been observed since February.

Data: Glassnode.

Over the past months, the share of Ethereum supply on dapps has risen from 11% to 17%. The number of coins on exchanges has fallen from 19,000 ETH to 15,500 ETH.

In an interview with Decrypt, Bityond founder Pedro Febrero stated the following:

“I suspect that what is happening is the same as with Bitcoin: more and more coins are being withdrawn from exchanges to private wallets. Most likely, users are not interested in short-term selling.”

Investor focus on mid- to long-term savings in the DeFi sector rather than speculative trades is likely to support the price of the world’s second-largest cryptocurrency by market capitalisation. Earlier this year, ForkLog reported that the price of ETH tested the $500 mark.

Against the backdrop of positive price momentum, Ethereum’s hash rate has hit an all-time high above 260 TH/s.

Data: Glassnode.

Earlier this year, Vitalik Buterin said that significant improvements to Ethereum’s network parameters would come soon.

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