Blockchain analytics firm Glassnode has reported that the amount of Bitcoin stored on decentralized exchanges has been falling rapidly.
In fact, an estimated 20% of the Bitcoin supply previously held on exchanges has receded with consumers withdrawing it into cold storage, which is touted as one of the best forms of protecting your cryptocurrency.
This view is espoused not just by crypto security experts but by Elon Musk himself who argued that any non-custodial wallet or exchange should be avoided. Glassnode also explained that the moved amounts didn't generate losses for consumers.
The data was published last Friday and used Glassnode's special Holdwaves metric to spot changes in BTC supply and how consumers interact with Bitcoin.
According to Glassnode, an estimated 57% of the total Bitcoin supply has not moved which points to another interesting trend.
Consumers, whether they are retail or institutional, are holding on to dear Bitcoin especially now that mining it costs millions. The popularity of DeFi yield protocols is also making some consumers reconsider how they store their currencies.
With the DeFi ecosystem clearly undergoing a good growth rate, there is a strong demand for Bitcoin, as well as the BTC tokenization protocol – Wrapped Bitcoin, which has increased by $1bn since the beginning of the month.
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