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Over the past two weeks, there has been a massive withdrawal of funds from exchanges to depository accounts.
What happened? A study by IntoTheBlock CEO Jesús Rodriguez shows that major BTC investors have increased their assets by more than 25% over the past 30 days. In addition, over the past two weeks, there has been a massive withdrawal of funds from exchanges to depository accounts. The analyst attributed this to the recent market correction after the collapse of the Terra blockchain ecosystem. This is reported in the blog of the CEO of IntoTheBlock.
Jesús Rodriguez’s Blog
What else does Rodriguez say? The analyst noted that, despite the outflow of BTC, there is an influx of Ethereum to cryptocurrency exchanges. Rodriguez also said that the fall in prices in the digital asset market caused a noticeable increase in liquidations on DeFi landing sites, such as Compound.
Rodriguez stressed that during the market correction, tokenized altcoins, such as Lido Staked ETH (stETH), and algorithmic stablecoins, like USDN, lost their peg to the assets on which their value is based. The result was massive outflows in Curve pools trading these assets in pairs with centralized stablecoins such as USDC and Tether (USDT).
NFT was the only area of the market that was not affected by the correction. The number of addresses containing NFT remained constant for most of the month. The number of collections of non-fungible tokens continued to grow.
What events have happened before? On May 10, about 40,620 BTC were sent to crypto exchanges ($ 1.1 billion at the Rate of Binance on May 26). This is the largest inflow of funds to the platforms since December 2019 (according to the analytical company Santiment). Probably, most of these funds came from the wallet of the non-profit organization Luna Foundation Guard (LFG), created to support the Terra ecosystem. On May 10, 28,205.54 BTC were withdrawn from the LFG reserve wallet to maintain the UST stablecoin’s pegging to the dollar.
However, on May 16, the lowest net btc flow on the platforms over the past 8 months was recorded. The net flow indicator is calculated based on the difference between the bitcoins entering the exchange and those withdrawn. A positive value of the indicator indicates an increase in reserves. For spot markets, a high value usually indicates rising sales pressures.
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