FTX crash pushes Bitcoin to self-custody; Ethereum switched for stablecoins

After the FTX collapse, traders are shifting giant quantities of Bitcoin (BTC) to their self-custody wallets and exiting Ethereum (ETH)  to spend money on stablecoins, based on knowledge analyzed by CryptoSlate.

Bitcoin retreats to self custody

The chart under demonstrates the quantity of liquid, illiquid, and extremely liquid Bitcoins since 2008.

As of November 2022, the quantity of Bitcoins held in self-custody wallets nearly reached 15 million. Out of the present circulating provide of 19,204,000, this quantity reveals that 78% of all Bitcoin is held in self-custody.

The chart under reveals the illiquid Bitcoin provide in additional element because the starting of the yr, and it reveals {that a} sharp enhance was recorded this week.

This sharp enhance could be the results of the dear classes the neighborhood realized from the latest events with regard to FTX’s liquidity disaster. Despite the fact that FTX lately committed to doing every part it might to offer liquidity, it nonetheless abstained from making any guarantees.

Stablecoins over Ethereum

The chart under collects the provides of the highest 4 stablecoins – Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and DAI (DAI)- which can be on completely different blockchains and compares them with the Ethereum Market Cap.

The info reveals that stablecoin dominance triumphed over Ethereum dominance as of Nov. 11. This solely occurred as soon as earlier than within the historical past of crypto throughout June 2022, and is a robust indicator exhibiting that traders are shifting giant funds into stablecoins as Ethereum market cap drops.

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