Almost twice the amount of ETH got locked in DeFi than in exchanges. The amount of DeFi locked in exchanges has fallen by 30% since the start of 2020. Moreover, the sum of Ether held on DeFi protocols is up to 75% over the same period.
Thus, Ether is getting locked in the decentralized finance contracts at an accelerating rate this year. Glassnode, an on-chain analytics provider, shared a chart that compares the number of Ether deposited in Ethereum based smart contracts to the number of ETH that got held on centralized exchanges over the past 17 months.
The share of supply represented by Ether on Centralized exchanges dropped by more than a quarter which is roughly 17 % to 12% since the start of 2020. On the other hand, the percentage of ETG that got locked in Smart contacts has increased by three quarters. The percentage comes from 13 % to 20 2.8 % over the same period.
DeFi
This clearly shows that DeFi is steadily eating into the centralized exchange’s profits obtained from the Ethereum trading fees. According to DeFi Llama’s estimate, 8.3 million coins or 7% of circulating Ether is locked in the Binance innovative chain protocols.
However, 286,15 3 or 0.25% of Ether supply got stuck on Solana. Additionally, 103,902 ETH that is 0.09%, is stuck on Avalanche.
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