After the FTX collapse, traders are transferring giant quantities of Bitcoin (BTC) to their self-custody wallets and exiting Ethereum (ETH) to spend money on stablecoins, in accordance with knowledge analyzed by CryptoSlate.
Bitcoin retreats to self custody
The chart beneath 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 virtually 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 beneath 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 precious classes the neighborhood realized from the latest occasions with regard to FTX’s liquidity disaster. Although FTX not too long ago dedicated to doing every little thing it could to offer liquidity, it nonetheless abstained from making any guarantees.
Stablecoins over Ethereum
The chart beneath collects the provides of the highest 4 stablecoins – Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and DAI (DAI)- which can be on totally different blockchains and compares them with the Ethereum Market Cap.
The information 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 displaying that traders are transferring giant funds into stablecoins as Ethereum market cap drops.
