Large bitcoin holders increased their assets by 25% in a month
For the last two weeks, there has been a mass withdrawal of funds from exchanges to depository accounts
26.05.2022 - 15:30
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What’s new? Research by IntoTheBlock CEO Jesus Rodriguez shows that large BTC investors have increased their assets by more than 25% in the past 30 days. In addition, there has been a mass withdrawal of funds from exchanges to depository accounts over the past two weeks. The analyst attributed this to the recent market correction following the collapse of the Terra blockchain ecosystem. This is reported on the blog of IntoTheBlock's CEO.
What else does Rodriguez say? The analyst noted that despite the outflow of BTC, there has been an inflow of Ethereum to cryptocurrency exchanges. Rodriguez also said that the drop in prices in the digital asset market has caused a notable increase in liquidations on DeFi-lending platforms such as Compound.
Rodriguez stressed that during the market correction, tokenized altcoins like Lido Staked ETH (stETH) and algorithmic stablecoins like USDN lost their peg to the assets on which their value is based. The result has been a massive outflow in Curve pools trading these assets in pairs with centralized stablecoins like USDC and Tether (USDT).
NFTs became the only area of the market not impacted by the correction. The number of addresses containing NFTs remained constant for most of the month. The number of collections of non-fungible tokens continued to grow.
What happened before? On May 10, about 40 620 BTC ($1,1 billion at Binance's exchange rate as of May 26) were sent to crypto exchanges. This is the largest inflow of funds to the platforms since December 2019 (according to an analytical company Santiment). Most of these funds probably came from the wallet of Luna Foundation Guard (LFG), a nonprofit organization set up to support the Terra ecosystem. On May 10, 28 205,54 BTC were withdrawn from the LFG's backup wallet to support the UST stablecoin's peg to the dollar.
However, as early as May 16, the lowest net flow of BTC on the platforms in the last 8 months was recorded. The net flow figure is calculated based on the difference between bitcoins coming into the exchange and those withdrawn. A positive value of the index indicates an increase in reserves. For spot markets, a high value usually indicates growing selling pressure.
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