DeFi has about twice as many ETH locked up as exchanges – Glassnode

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While the amount of ETH locked in DeFi protocols has increased by 75% since the beginning of 2020, the amount of Ether kept on centralised exchanges has decreased by 30% over the same time span.

This year, ether is being locked up in decentralised finance contracts at a the pace, whilst the volume kept on centralised exchanges is declining.

On May 7, on-chain analytics provider, Glassnode, shared a chart comparing the number of Ether deposited in Ethereum-based smart contracts to the number of ETH held on centralized exchanges over the past 17 months.

After the beginning of 2020, Ether’s share of supply on centralised exchanges has fallen by more than a quarter, from about 17 percent to 12 percent.

During the same time frame, the proportion of ETH trapped in smart contracts rose by three-quarters, from 13 percent to 22.8 percent, demonstrating that DeFi is slowly cutting into centralised exchanges’ earnings from Ethereum trading fees.

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Ether supply in smart contracts vs Ether on centralized exchanges: Glassnode

Figures from crypto data aggregator DeFi Llama suggest that ETH equivalent to roughly 9% of the supply is locked in smart contracts hosted by networks other than the Ethereum mainnet.

According to DeFi Llama, 8.3 million coins, or 7% of circulating Ether, are trapped in Binance Smart Chain protocols, while 286,153 Ether, or 0.25 percent of stock, is on Solana, and 103,902 ETH, or 0.9%, is on Avalanche. About 1.6 percent, or 2.8 million Ether, is kept in “other” networks.

Ether’s spectacular surge to fresh all-time highs over $3,500 has reignited talk of a Bitcoin ‘flippening,’ with Ether futures volumes briefly outpacing BTC stocks this week.


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