Blockchain data shows that since the upgrade of Ethereum in Shanghai, as investors flock to decentralized competitors, centralized cryptocurrency exchange giants Binance and Coinbase have suffered a significant outflow of Ethereum (ETH) deposits.According to Dune Analytics' data dashboard, Coinbase's mortgage platform has suffered a net outflow of $367 million in mortgage ETH since April 12th, as withdrawal requests - including bonus withdrawals and full withdrawals - exceed new deposits
Blockchain data shows that since the upgrade of Ethereum in Shanghai, as investors flock to decentralized competitors, centralized cryptocurrency exchange giants Binance and Coinbase have suffered a significant outflow of Ethereum (ETH) deposits.
According to Dune Analytics' data dashboard, Coinbase's mortgage platform has suffered a net outflow of $367 million in mortgage ETH since April 12th, as withdrawal requests - including bonus withdrawals and full withdrawals - exceed new deposits.
On the other hand, decentralized liquid betting agreements have led to a significant increase in deposits. FraxFinance and RocketPool were the two companies with the highest revenue, recording net inflows of $56 million and $68 million, respectively. The betting service of Binance, the world's largest cryptocurrency exchange, has seen a net outflow of $340 million. This development emerged after Ethereum's highly anticipated Shanghai upgrade on April 12th, which allowed investors to withdraw approximately $35 billion in tokens previously locked in betting contracts.
Ahmed Ismail, founder and CEO of the liquidity aggregation platform FLUIDFinance, said that this upgrade is "a major catalyst" for dispersed liquid betting solutions. The liquid betting agreement issues a derivative token that represents the number of locked tokens and provides investors with decentralized financial (DeFi) services such as loans and borrowings.
According to DefiLlama's data, Frax and RocketPool's ETH bet amounts have increased by 32.5% and 31% respectively in the past 30 days, driven by new deposits. Lido Finance is the largest diversified liquid betting agreement with approximately $11 billion in deposits, and since April 12th, deposits booked have also exceeded withdrawals by approximately $28 million (15208 ETHs).
Regulatory issues, higher yield digital asset investment company 21Shares analyst Tom Wan said in a statement that regulatory risks and aversion to centralized cryptocurrency platforms after last year's bankruptcy may be one of the reasons why investors are turning to decentralized betting agreements.
Analysts predict that this event will be an important milestone for the $225 billion network, which is likely to promote betting participation, attract institutional investors, and reshuffle competition between betting services. In February of this year, after the United States Securities and Exchange Commission (SEC) accused the exchange of providing unregistered securities, the cryptocurrency exchange Kraken agreed to close its betting service.
John "Omakase" Lo, head of digital assets at investment firm RechargeCapital, stated that regulatory pressure on centralized entities may continue. This uncertainty is not conducive to preserving deposits, "he added.
Currently, Coinbase and Binance provide approximately 4% annualized returns for betting on ETH, while decentralized agreements LidoFinance and FraxFinance offer interest rates of 5-7%. Investors may also be swayed by the higher returns provided by decentralized agreements. Concentrated liquid fixed points typically have lower returns. Compliance and staffing will increase, "Omakase said.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
