In data revealed by OKLink, a blockchain technology company, Ethereum holdings fell to just over 9% of the total supply in the Centralized Exchanges. The percentage is the lowest in three years.
According to OKLink, only 11 million of the 117 million ETH supply is owned by Centralized Exchanges addresses, the lowest level since February 2018.
The main factor contributing to the low holdings is the recent development in Decentralized Finance, according to Eddie Wang, a senior researcher at OKLink who told Coindesk. Other factors include Wrapped Ether (WETH), deposits, liquidity pools, etc.
Wrapped Ether is the process that converts tokens according to the ERC-20 standards and links them to Ether price. It makes the tokens easier to transfer and trade on DeFi platforms. Currently, WETH accounts for over 5.7% of the Ether supply, according to information site TokenView.
Wang noted that another important factor might be the platform upgrade to Ethereum 2.0. Currently, over 6.5 million ether are locked into 2.0 contract addressing.