According to data released by Chain.info, around 10.6% of Bitcoin traded (BTC) is currently held by only five central exchanges.
Currently, there are over 1.96 million BTC stored between the major exchanges Coinbase, Huobi, Binance, OKEx and Kraken.
Perhaps due to its storage service, Coinbase has the largest number: 944,904 BTC currently distributed across nearly 4.39 million different wallet addresses.
In second place is Huobi, with 323,665 BTC stored in nearly 901,600 unique wallets, followed by Binance with 289,961 BTC to nearly 2.7 million addresses. OKEx has 276 184 BTC in 339,000 wallets, and Kraken has 126,510 bitcoins out of 672,000 addresses.
The following seven exchanges – Bitflyer, BIttrex, Bitfinex, Poloniex, Coincheck, Gate.io, and Bitstamp – have another 210,000 Bitcoin in between.
The data shows that many users still choose to accept the security risks associated with owning a large percentage of their assets in centralized exchanges, despite the basic spirit of decentralization in cryptocurrency and the mantra is “not your keys, not your Bitcoin”.
The share of the Bitcoin supply on five central exchanges could actually be over 10%, with Chainalysis recently estimating that 3.7 million Bitcoins had not moved in more than five years would likely be lost. If true, then approximately 15% of Bitcoin’s offerings are currently stored on five central platforms.