Nexo co-founder Antoni Trenchev opined to Cointelegraph this trend is actually led by the world ultimately realizing this just Bitcoin offers good monetary policy:
“[People are actually] slowly are experiencing what several of us have widely known for some time – BTC is the only sound monetary policy right now and you can’t afford to depart from the very best performing advantage of the decade.”
In addition, he mentioned that the society is resorting more to self-custody solutions, including platforms like Nexo, just where they are able to “tax efficiently borrow against the assets of theirs rather than promoting them.” Cointelegraph observed yesterday that the Bitcoin supply is currently diffused greater than ever.
Alex Mashinsky, co-founder of the Celsius crypto lending wedge, told Cointelegraph that the exodus will most likely continue unless exchanges start to offer better terms to their customers:
“As long as switches reject to give their clientele much more they will leave them and go to Celsius. We merely crossed $2.7B in deposits since launch two years ago. We would not be developing really quickly unless we did significantly more to the customers of ours than exchanges.”
By the chart above, we can see that this swing hasn’t influenced all interchanges equally. While balances at BitMEX and Bitfinex had been decimated, decreasing by much more than more than half, Binance has went on to build up extra resources. Coinbase’s coffers have remained generally unchanged as well.
The progression of DeFi could have in addition contributed to this direction. The amount of Bitcoin locked on Ethereum via wBTC as well as renBTC presently exceeds 130,000. Just a few months before, these numbers were negligible. One more possible root cause is institutional adoption. Apart from the continuous development of Grayscale’s Bitcoin Trust Fund, publicly traded companies as MicroStrategy and Square set about adding crypto assets to their treasuries.
It appears that there is both an overall trend towards owners withdrawing Bitcoin from custodial interchanges, or perhaps maybe a few major exchanges are merely having to sacrifice the loyalty of their potential customers. The latter may be a decent conclusion, as a simple three platforms (BitMEX, Huobi, and Bitfinex) had been to blame for the bulk of the movement – their balances decreased by 390,000 BTC, allowing them to be responsible for nearly 80 % of the total decline.