The amount of Ethereum (ETH) in crypto money exchanges has seen the bottom of 9 months. This situation brought to mind the question “Is Ethereum falling with the effect of DeFi?” In addition to this decrease, a decrease was observed in the number of wallets with a thousand and more ETH.
Glassnode Alerts account, which transmits information from Glassnode on Twitter, revealed striking facts about Ethereum with the tables it shared. According to the shared data, the ETH balance in the exchanges is at the lowest level in 2020. In addition, there is a decline in the number of wallets that are major ETH investors.
According to Glassnode data, the number of wallets with a thousand or more Ethereum has also dropped significantly over the past two years. With this decrease, the number of wallets with one thousand and more ETH reached 7 thousand 218.
The Amount Of ETH In Crypto Currency Exchanges Has Bottomed
Ethereum’s on-chain activities are declining, according to graphics published by Glassnode. The amount of Ethereum held on cryptocurrency exchanges has declined significantly, seeing about 16.5 billion ETH, the lowest in 9 months.
According to U Today, the amount of Ethereum that declines in stock markets can actually be correlated with the interest of users in the DeFi world. Investors may prefer to lock down their ETH to the increasingly popular DeFi platforms to evaluate in the yield farming model.
Not All Goes Bad for Ethereum
Despite all these developments, there are positive developments for Ethereum. According to information from Glassnode, the number of wallets with at least 1 ETH in their account saw an all-time high of 47.1 million. In addition, the number of ETH connected to crypto money exchanges has increased by approximately 40% in the last 24 hours.
As shown by the negative developments, the DeFi trend is pointed out for positive developments. People are getting more and more interested in ETH to transact on DeFi protocols. However, the scalability of the Ethereum network and the compression it suffered with demand began to frustrate users. New initiatives such as Binance Launchpool that will eliminate the ETH requirement could pose serious threats to the Ethereum network in the future.