The Current State Of DeFi Was Examined In Twitter Thread By Nansen Research Analyst

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The current state of DeFi was examined in Twitter thread by Nansen research analystImage: Shut­ter­stock

The cur­rent state of decen­tralised finance (DeFi) was exam­ined in a thread on Twit­ter by Nansen research ana­lyst San­dra Leow, focus­ing on the move­ment of ETH and sta­ble­coins away from cryp­to exchanges. Cur­rent­ly, more than 15 mil­lion ETH are held in the Ethereum 2.0 deposit con­tract, while 4 mil­lion Wrapped Ether (wETH) are kept in the wETH deposit con­tract. With more than 2 mil­lion tokens, Jump Trad­ing is the ecosys­tem’s third-largest ETH hold­er. It cre­ates and funds the infra­struc­ture for Web3. 



It is impor­tant to note that Binance, Krak­en, Bitfinex, and Gem­i­ni have the largest ETH bal­ances among wal­lets. In addi­tion, there is a siz­able hold­ing of ETH on the Arbi­trum lay­er 2 roll-up bridge.

Leow out­lined how the per­cent­age rise in ETH stored in smart con­tracts can be inter­pret­ed as ETH mov­ing into var­i­ous DeFi prod­ucts in a let­ter to Coin­tele­graph. Stak­ing con­tracts, decen­tralised cryp­to exchanges, and cus­tody ser­vices fall under this category.

“There is an ampli­fi­ca­tion for the state­ment. Not your keys, not your coins, and this are espe­cial­ly rel­e­vant giv­en times like these,” Leow said, high­light­ing the pos­si­bil­i­ty that the safe­ty of cash housed on cryp­to exchanges may not be guaranteed. 

Accord­ing to Nansen’s exchange flow dash­board, Jump Trad­ing is a busi­ness with sub­stan­tial exchange with­draw­al vol­umes rel­a­tive to its deposits. Leow offered sev­er­al poten­tial expla­na­tions for Jump Trad­ing’s token move­ments, point­ing out the com­pa­ny’s expo­sure to Serum (SRM) tokens, a liq­uid­i­ty hub. They had to remove some tokens from cryp­to exchanges that required liq­uid­i­ty because of their expo­sure to the FTX fall­out. Jump Trad­ing has pulled ETH, BUSD, USDC, USDT, SNX, HFT, CHZ, CVX, and oth­er tokens from var­i­ous cryp­to exchanges over the past sev­en days.

Over the pre­vi­ous sev­en days, a size­able quan­ti­ty of ETH has also moved out of sev­er­al sig­nif­i­cant exchanges. The amount of ETH that left Gem­i­ni was $829 mil­lion, where­as the amount that left Upbit’s account was $797 mil­lion. The amount of ETH that left Coin­base was $597 mil­lion, and the amount that left Bitfinex’s plat­form was $542 million.

Addi­tion­al­ly, with­in the past week, sev­er­al sta­ble­coins were removed from exchanges. Gem­i­ni saw the move­ment of sta­ble­coins worth $294 mil­lion, while Bitfinex had $173 mil­lion leave its plat­form. Sta­ble­coins worth $138 mil­lion and $108 mil­lion was then removed from KuCoin and Coin­base, the two exchanges, respectively. 

Leow also explained the sta­ble­coin move­ment that out­flows are often a sign that investors are stay­ing away from the cryp­to mar­ket and that users are not active­ly par­tic­i­pat­ing, “Per­haps, the pro­longed bear mar­ket and mar­ket con­ta­gion dimin­ish traders’ appetite to invest and engage in the space actively.” 
The writer is the founder at yMedia. He ven­tured into cryp­to in 2013 and is an ETH max­i­mal­ist. Twit­ter: @bhardwajshash

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