Ethereum Supply in Smart Contracts Surpasses That on Exchanges: Glassnode

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Sat, 09/19/2020 - 08:37
Yuri Molchan
Glassnode agency has reported that users are currently putting most of their ETH in DeFi smart contracts instead of keeping it on centralized digital exchanges
Ethereum Supply in Smart Contracts Surpasses That on Exchanges: Glassnode
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In its recent tweet, Glassnode analytics provider shared a chart showing that the amount of ETH locked in smart contracts at the moment has well exceeded ETH supply on cryptocurrency exchanges, showing that users prefer to utilize it for profiting from DeFi, rather than waiting for a good moment to trade.

ETH supply in smart contracts skyrockets

Glassnode has shared data which says that the amount of Ethereum locked in DeFi smart contracts has surpassed ETH supply stored on centralized crypto exchanges.

The movement of ETH transfers started going in opposite directions approximately on August 24, as per the chart. Back then, the curve of ETH locked in smart contracts began going up significantly.

Whereas the amount of ETH held on centralized trading platforms, such as Binance, Coinbase, etc, began to degrade.

ETH
Image via Twitter

This is the time, when the YAM project became overhyped and users were locking large amoutns of various coins in them, including ETH, through multiple pools.

Back then, the BItMEX CEO tweeted that he became a yield-farmer, while Erik Voorhees slammed DeFi yield-farming, calling it just another type of crypto scam.

Among decentralized exchanges where ETH is going en masse right now is the recently launched Uniswap. 

Doubts about DeFi

The YAM protocol collapsed after that due to a bug and the upgraded version has not been launched yet.

Some experts in the industry remain skeptical about DeFi, e.g. Tone Vays who recently called decentralized finance platforms and contracts “an even bigger idiocy than ICO was”.

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Number of ETH non-zero addresses hits a new ATH

Glassnode also shared another graph, reporting that new users keep coming in Ethereum attracted by its prospects, most likely including yield-farming on DeFi.

The chart says that the amount of non-zero addresses has increased to a new all-time high of 47,122,017 units.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.