Ethereum Adoption: ETH Transactions via Decentralized Exchanges Growing Rapidly, Many Investors are Now Long-term Ether Holders, Data Suggests

The total volume of Ether (ETH) transactions performed via decentralized or non-custodial cryptocurrency exchanges (DEXs) reached approximately $2 billion (in total) for the first four months of this year.

It appears that traders have recently begun to increasingly use DEXs to trade ETH this year, as Dune Analytics data shows that there were only about $2.4 billion worth of Ether transactions processed via decentralized exchanges all of last year.

Interestingly, over three-quarters or 75% of the Ether held in externally-owned crypto addresses has not moved in six months, even though there were extreme price fluctuations during that time period.

Glassnode data reveals that most or many Ethereum (ETH) traders may be holding and not selling the world’s second-largest digital asset.

About 77.7% of Ether’s outstanding or circulating supply has not been moved in six months, and the majority or 57.6% of all ETH hasn’t been transferred to other addresses during 2020, and 31.6% of all ETH has remained at the same address since the past two years.

Bitcoin (BTC) investors appear to be acting in a similar manner, as 42.8% of BTC’s circulating supply hasn’t moved for over two years, which is notably a 10.4% increase from 2019 – suggesting that the flagship cryptocurrency might become a legitimate store of value.

The number of BTC addresses that hold at least 0.1 BTC (appr. $875 at time of writing) has surpassed the 3-million mark for the first time, as digital asset investors get ready for the upcoming Bitcoin halving event, when the cryptocurrency’s supply will be reduced by 50%.

Some crypto analysts claim that the BTC halving has been “priced in” already, and that it won’t affect the digital asset’s price (significantly).

But others point out that crypto and broader financial markets are often irrational and that the market dynamics are more accurately described by behavioral economics, which was inspired by Danny Kahneman, a psychologist by profession, who notably received a Nobel Prize in economics for his valuable contributions.

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