The hype around DeFi triggered the outflow of Ethereum from crypto exchanges

CONTENT

  • The dollar volume of ETH outflow from cryptocurrency exchanges reached the level of 2018

  • Bitstamp Remains Leader in Ethereum Withdrawals Since Summer 2020

  • Cryptocurrency whales stay away from the DeFi hype

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Since mid-August, Ethereum withdrawal volumes from crypto exchanges have approached the level of the 2018 cryptocurrency rally

More and more users are trying to keep up with the hype around the decentralized finance market (DeFi) Decentralized finance (DeFi) is a blockchain-based financial service that offers users access to an open, efficient and … More).

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At least this is evidenced by the decreasing balances of the Ethereum (ETH) cryptocurrency on cryptocurrency exchanges..

The largest outflow as of August 31 was recorded on the Bitstamp exchange – over 890 thousand ETH (more than $ 380 million at the exchange rate at the end of August).

Source: intotheblock.com

By the way, since the beginning of 2020, Bitstamp has almost always taken the lead in terms of the outflow of funds. During the March collapse, the exchange also ranked first in terms of the amount of funds withdrawn.

Panic attack

If you look at the picture from a broader perspective, you can see that since the summer of 2020, Bitstamp has recorded an increase in outflow of funds almost weekly..

However, if you look at the total number of outgoing transactions in the ETH cryptocurrency, you will notice that since mid-August, the trend has continued not only on Bitstamp, but also on all major exchanges..

What is DEFI? Decentralized Finance Explained (Ethereum, MakerDAO, Compound, Uniswap, Kyber)

Source: intotheblock.com

The total outflow of ETH in dollar terms approached the $ 790 million mark. The last time this level was observed back in January 2018, when the price of the Ethereum cryptocurrency was above $ 1000.

If in the case of Bitstamp, high withdrawal activity can still be associated with Brexit and the closure of the London office, then the cumulative outflow of ETH may signal the desire of a large number of people to catch the hype train around DeFi.

The whales stay away

DeFi Excitement Spurred Ethereum Outflow From Crypto Exchanges

Not all exchanges have added listing tokens such as YFI, YFFI, LEND, AMPL and others, due to the potential risks of inflating a large bubble, similar to the ICO in 2017.

This is not surprising, since over the past few days, many tokens from the DeFi market have really skyrocketed by 20%, 30% and even 50%, but how justified such a pump is remains unknown..

$9700 BITCOIN: BULL RUN TRIGGER! HUGE AMOUNTS OF BITCOIN SENT TO EXCHANGES! CRIPPLING DEFI FLAW!

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One of the few sites where you can buy DeFi tokens of the market at the time of this writing is the decentralized exchanger Uniswap, which has already felt the excitement, overtaking even Coinbase Pro in trading volumes..

Indicative in this situation is the outflow of ETH from the OKEx exchange. Among the top 14 exchanges for withdrawal of funds, OKEx takes only 4th place (over $ 30 million in ETH withdrawn on August 31), although the exchange turned out to be the leader in the number of large transactions.

Such an unimpressive outflow from OKEx could mean that the big players in the cryptocurrency market do not succumb to the rush of quick money and the high risk associated with investing in the market’s DeFi tokens..

At the time of this writing, the price of ETH / USDT is $ 471.

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DeFi Excitement Spurred Ethereum Outflow From Crypto Exchanges
DeFi Excitement Spurred Ethereum Outflow From Crypto Exchanges
DeFi Excitement Spurred Ethereum Outflow From Crypto Exchanges

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