there is less and less Ether in exchanges and wallets

Key facts:
  • The DeFi ecosystem has 8 million Ether (ETH) in its possession.

  • Since August 15, the ETH balance on centralized exchanges decreased by 11.6%.

Despite some drops in token prices in recent days, the defmania does not stop. Every time more Ether (ETH) moves from exchanges centralized and wallets towards smart contracts of DeFi (decentralized finance) platforms that, for the most part, are built on the Ethereum network.

This is demonstrated by a report Posted by Glassnode. «Since August 15, the balance in ETH in the exchanges centralized funds has decreased by 11.6% with 2.2 million ETH withdrawn, ”he says. Furthermore, it indicates that “the amount of ETH in smart contracts has increased by 3.4 million ETH.”

This means that not only is Ether moving from the exchanges to the DeFi ecosystem, but also from wallets to smart contracts.

According to the analysis, “Right now, the DeFi ecosystem has 8 million ETH blocked” and that number is continually growing. Centralized exchanges, for their part, have a total of 16.6 million ETH and, according to this study, there “the volume is stagnating.”

The amount of ETH in smart contracts grows and the volume in exchanges is reduced. Source: Glasnode / glasnode.com

Such as reported CriptoNoticias days ago, total ETH deposited in smart contracts exceeds 15% of supply of this cryptocurrency.

Although the DeFi ecosystem represents an investment opportunity that rarely provides unusual returns, it is extremely risky. Its users are exposed to possible code errors on unaudited platforms, to hacks, a scams, or sudden falls in the price of tokens, as happened recently with the currency of la plataforma Bakery Swap, which lost 90% of its value on the same day it was launched.

But ambition is stronger than prudence and the volume of money deposited on DeFi platforms, with some ups and downs, is in a clear uptrend.

ethereum-ether-deposited-platforms-Defi
There is USD 9.49 billion deposited on DeFi platforms. Source: defipulse.com

Who leads the DeFi ranking

Uniswap, Maker, Curve Finance and Aave, in that order, lead the list of the DeFi platforms with the most money deposited. Among the four they accumulate, at the time of writing, USD 5.63 billion blocked in their smart contracts. That’s more than half of the $ 9,490 in the entire DeFi ecosystem.

The first of these platforms, the exchange decentralized Uniswap, has in its possession 20% of the DeFi market. The recent launch of the launch of its token UNI encouraged many to provide liquidity to the protocol in exchange for obtaining some of these coins. To date, each UNI is equivalent to USD 4.65, which represents 33% below its maximum of USD 6.99 reached on September 19.

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