[Taklimakan Blog] Investors Withdraw ETH from Crypto Exchanges

Ether (ETH) reserves of crypto exchanges continue to dwindle, however, investors do not seem to be transferring cryptocurrency to DeFi platforms

ETH reserves of cryptocurrency exchanges continue to decline rapidly. This is evidenced by the on-chain statistics of the IntoTheBlock service. According to the indicators, the total outflow of the second altcoin in terms of capitalization from crypto exchanges over the past week amounted to 528,040 ETH.

On an annual basis, as you can see in the chart above, most of the operations were aimed at withdrawing cryptocurrency. The only notable exception was May 19 and 23, when the total inflow amounted to 663.5 thousand ETH. For the rest, as a rule, exchange reserves recorded the outflow of ETH.

However, as Glassnode analysts found out, the outflow of cryptocurrency did not lead to an increase in the volume of ETH to the decentralized finance (DeFi) market. The aggregate activity for COMP, AAVE, UNI, and YFI DeFi tokens has dropped significantly over the past month.