Nexo co founder Antoni Trenchev opined to Cointelegraph that this trend is actually pushed by the world eventually knowing that only Bitcoin provides good monetary policy:
“[People are actually] slowly are experiencing what some of us have widely known for some time – BTC is the one audio monetary policy right this moment and you cannot find the money to depart from the very best performing asset of the decade.”
Also, he observed that the community is actually resorting more to self-custody methods, including platforms as Nexo, exactly where they are able to “tax-efficiently borrow from their assets as opposed to advertising them.” Cointelegraph observed yesterday that the Bitcoin resources is currently diffused greater than ever.
Alex Mashinsky, co founder of the Celsius crypto lending platform, told Cointelegraph that the exodus will most likely continue unless interchanges start offering better terms to their customers:
“As long as switches reject to offer the clients of theirs much more they will leave them and show up to Celsius. We just crossed $2.7B of debris since launch 2 years back. We wouldn’t be developing very quickly unless of course we did significantly more to our consumers than exchanges.”
By the chart above, we can see that this swing hasn’t impacted all interchanges equally. While balances at BitMEX and Bitfinex were decimated, reducing by much more than more than half, Binance has carried on to build up more funds. Coinbase’s coffers have remained mostly unchanged too.
The growth of DeFi may have additionally contributed to this phenomena. The volume of Bitcoin locked on Ethereum via wBTC as well as renBTC presently surpasses 130,000. Only a couple of months past, these numbers were negligible. Yet another possible primary cause is actually institutional adoption. Apart from the constant development of Grayscale’s Bitcoin Trust Fund, publicly-traded companies like MicroStrategy and Square started putting in crypto assets to the treasuries of theirs.
It seems that there’s either an overall trend towards users withdrawing Bitcoin from custodial switches, or perhaps maybe a couple of main exchanges are simply having to sacrifice the self-confidence of the customers of theirs. The latter may be a reasonable conclusion, as a mere three platforms (BitMEX, Huobi, and Bitfinex) were liable for the bulk of the trend – their balances decreased by 390,000 BTC, allowing them to be responsible for almost eighty % of the complete decline.