Data from cryptocurrency unit Glassnode shows that the number of bitcoins held on central exchanges has decreased by almost 20% in 12 months.
The data show that investors are hoarding bitcoins and withdrawing them from exchanges to cold stores, which is leading to a supply crisis.
On March 6, Glassnode also shared data showing that coins purchased in 2021 were not moved at a loss at the end of February, according to a series analysis.
The Hodlwaves meter, which measures the time that has elapsed since the last currency transfer in the chain, also indicates an increase in accumulation activity. Hodlwaves data released on February 22 showed that 57% of the bitcoin supply has not moved in over a year. However, more than a third of the mentioned BTCs have not moved in more than five years, indicating that a significant part of the coins may have been lost.
The growing popularity of decentralized exchanges and DeFi return protocols may reduce the supply of BTC on centralized exchanges.
According to DeFi Llama, demonstrated by the high demand for bitcoins in the DeFi ecosystem, the total closed value, or TVL, of encapsulated bitcoin BTC tokens has increased by more than $ 1 billion since the beginning of March.