ETH Deposited in Smart Contracts Surpass Balances on Exchanges

eth in smart contracts surpass exchanges nov 2020

The biggest custodian of eth is turning out to be the ethereum network itself with the amount deposited in smart contracts surpassing the eth sums held by exchanges. According to Glassnode Studio, a blockchain analytics startup, 16.5% of ethereum’s total supply is now held by smart contracts. That translates to some 18 million eth, worth about $8 billion, while exchanges hold 11% of the supply or 15.5 million eth worth about $7 billion. So the decentralized code network itself is holding $1 billion more than the trading venues, indicating a potential shift and maybe even an opening for disruption. As ethereum is Turing complete, you can code anything there, including an exchange. That is precisely what quite a few projects have done. In the process, something new has been invented: Automated Market Making. That is something like Uniswap where any token can have a market by self listing liquidity pools…

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