Crypto traders withdrawing 2,000 BTC daily from centralized exchanges
The amount of BTC held on centralized exchanges has consistently fallen since late May, with roughly 2,000 BTC withdrawing from exchanges daily.
The report Week On-Chain from Glassnode found that Bitcoin reserves on centralized exchanges have fallen back to levels not seen since April, the month that saw the cryptocurrency surged to its all-time high of $65,000.
The report notes that during the bull run leading up to this peak, relentless depletion of exchange coin reserves was a key theme.
Glassnode concludes that much of this BTC went to the Grayscale Trust (GBTC) or was accumulated by institutions, driving a persistent net outflow from exchanges.
As Bitcoin prices moved in May, this trend reversed as coins were sent to exchanges for liquidation. Now, the net transfer volume has moved back into negative territory again as outflows increase.
Glassnode’s report also noted that the part of on-chain transaction fees represented by exchange deposits declined to 14% dominance this past week, following a brief peak to around 17% in May.
On-chain fees associated with withdrawals saw a notable bounce from 3.7% up to 5.4% this month, suggesting an increasing preference for accumulation over sales, the report further added.
Apparently, the fall in exchange reserves seems to have coincided with an uptick in capital flows to decentralized finance (DeFi) protocols over the past fortnight. According to the DeFi aggregator, DeFiLlama, the total value locked (TVL) has increased by 21% since June 26 as it climbed from $92 billion to $111 billion.