On-chain data source Glassnode announced that the amount of Bitcoin (BTC) held on central exchanges fell nearly 20 percent in 12 months.
The data shows that investors are saving BTC and pulling it from exchanges to cold wallets, reducing the circulating supply.
— William Clemente III (@WClementeIII) March 7, 2021
On March 6, Glassnode revealed that BTC purchased in 2021 did not move even in the price drop at the end of February. data shared.
The “Hodlwaves” metric by the firm, which measures the time that has passed since the cryptocurrencies were last moved on the chain, also points to the increasing amount of accumulation. On February 22 released Hodlwaves data showed that 57 percent of the Bitcoin supply had not moved in more than a year.
However, more than a third of the BTC in question has not moved for more than five years, suggesting that a significant portion of the coins may have been lost.
The growing popularity of decentralized exchanges (DEX) and decentralized finance (DeFi) protocols could be one of the reasons behind the declining BTC supply on centralized exchanges.
DeFi Llama data, which reveals strong demand for Bitcoin in the DeFi ecosystem, says that the total BTC locked in the decentralized finance ecosystem has increased by more than $ 1 billion since March.