Data from blockchain analytics firm Glassnode reveals that the number of Bitcoin on centralized exchanges has crashed by roughly 20% in the past 12 months.
This is an indication that investors are actively accumulating the leading cryptocurrency and stashing it in cold storage.
The on-chain analytics provider recently shared data suggesting new Bitcoin hodlers did not panic sell their crypto holdings amid the massive dip witnessed in late February.
Glassnode’s “Hodlwaves” metric, which evaluates the time since coins were last moved on-chain, also supported the narrative of increased accumulation activity. According to the Hodlwaves data, which was published on February 22, 57% of Bitcoin’s supply has not moved in over a year. Furthermore, more than one-third of the said percentage has not moved in over five years. Whilst it is possible that these coins belong to long-term hodlers, there is also the possibility that a significant portion of the assets may have been lost.
Another possible explanation is the rising popularity of decentralized exchanges and DeFi yield protocols. Several large investors are turning sight to DeFi offerings to make quick gains. To buttress this point, the total BTC value locked on Wrapped Bitcoin has increased by more than $1 billion this month.