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In 2021, the Bitcoin holdings of long-term investors increased by 1.846 million BTC (+ 16%), reaching 13.33 million BTC. The corresponding figure for short-term investors for the year decreased by 32% to 3.01 million BTC, according to ForkLog’s annual report.
Bitcoin supply dynamics among short-term and long-term investors. Data: Glassnode.
Large players tend to accumulate and hold cryptoassets for a long time, acquiring coins on deep drawdowns. Their purchases can restrain the intensity of future corrections, reducing the bearish pressure on the price from speculators. The latter are inclined to sell against the background of the fall.
Against the backdrop of a price correction at the end of November 2021, the outflow of bitcoins from centralized exchanges (CEX) was replaced by an influx. A similar dynamic was observed in relation to Ethereum.
Data: ForkLog.
At the end of the year, the volume of BTC supply on CEX decreased by only 1.08%. The inflow to the exchanges at the end of November indicates a deterioration in the sentiment of short-term investors, as well as their desire to hedge their risks.
The share of ETH locked in smart contracts for decentralized applications grew steadily throughout 2021. If on January 1, 2021, the indicator was 16.25%, then in January 2022 it reached 26.93%.
Data: ForkLog.
The growth in the volume of blocked funds occurred against the backdrop of the development of DeFi, which is dominated by Ethereum. At the end of the year, the total liquidity of the sector increased 13 times, reaching $ 245 billion.
Data: ForkLog.
In 2021, the Ethereum ecosystem was the leader in the number of active developers (over 4,000). However, projects like Solana and Polkadot have grown at a faster pace.
As a reminder, there are 1.3 million BTC on the addresses of centralized trading platforms – 6.5% of the total market supply, according to CryptoRank. Most of these coins (over 44%) are stored in Coinbase exchange wallets.
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