Recent data from on-chain cryptocurrency information aggregator Glassnode reveals that the amount of Bitcoin persisted centralized exchanges has fallen by roughly 20% in 12 months.
Earlier on 6th March, Glassnode also shared data revealing that coins purchased within this year in 2021 weren’t moved at a loss within the late February dip, consistent with on-chain analysis.
The firm’s “Hodlwaves” metric, which measures the time since coins were last moved on-chain, also points to increasing accumulation activity. Hodlwaves data published on 22nd Feb. revealed that 57% of Bitcoin’s supply has not moved in additional than one year. However, over one-third of said BTC hasn’t moved in additional than five years, suggesting that a big portion of the coins may are lost.
The increasing popularity of decentralized exchanges and DeFi yield protocols can also be driving the diminishing supply of bitcoin on the centralized exchanges.
Evidencing strong demand for Bitcoin within the DeFi ecosystem, the entire value locked, or TVL, of BTC tokenization protocol, Wrapped Bitcoin has increased by over $1 Bln since the beginning of March, consistent with DeFi Llama.