Nexo co founder Antoni Trenchev opined to Cointelegraph this phenomena is actually pushed by the planet eventually acknowledging this merely Bitcoin provides sound monetary policy:
“[People are actually] slowly are experiencing what several of us have known for some time – BTC is the one sound monetary policy right now and also you can’t afford to depart from the best performing asset of the decade.”
He also mentioned that the community is resorting more to self-custody methods, including platforms like Nexo, where they’re able to “tax efficiently borrow from the assets of theirs instead of marketing them.” Cointelegraph noted yesterday that the Bitcoin supply is currently diffused more than ever.
Alex Mashinsky, co-founder of the Celsius crypto lending platform, told Cointelegraph that the exodus will probably continue unless interchanges begin to offer better terms to their customers:
“As long as exchanges refuse to give the clientele of theirs much more they will leave them and show up to Celsius. We just crossed $2.7B of debris since launch 2 years ago. We would not be cultivating so quickly unless of course we did more to the clients of ours than exchanges.”
From the chart above, we can see this swing has not influenced all the exchanges at the same time. While balances at BitMEX and Bitfinex had been decimated, lessening by more than half, Binance has continued to gather extra funds. Coinbase’s coffers have remained mostly unchanged as well.
The progress of DeFi could have also contributed to this trend. The amount of Bitcoin locked on Ethereum via renBTC and wBTC currently exceeds 130,000. Just a couple of months before, these numbers had been negligible. One more possible root cause is institutional adoption. In addition to the constant development of Grayscale’s Bitcoin Trust Fund, publicly-traded organizations as MicroStrategy and Square began incorporating crypto assets to the treasuries of theirs.
It seems that there’s either a general trend towards users withdrawing Bitcoin from custodial exchanges, or perhaps a couple of major exchanges are simply losing the loyalty of the customers of theirs. The latter might be a reasonable conclusion, as a mere three operating systems (BitMEX, Huobi, and Bitfinex) had been responsible for the majority of the trend – their balances decreased by 390,000 BTC, making them accountable for nearly eighty % of the utter decline.