• Over 500,000 BTC has left Coinbase, Kraken, and Gemini in the past 13 months – more than any other exchange.
• At the end of 2021, Coinbase held over 690,000 BTC, Kraken held roughly 195,000 BTC, and Gemini held approximately 315,000 BTC.
• At the beginning of 2023, the exchanges now hold roughly 485,000 BTC on Coinbase, 83,000 BTC on Kraken, and 133,000 BTC on Gemini.
The decentralized finance (DeFi) and cryptocurrency industry has seen a significant amount of growth over the past year, resulting in an increased demand for cryptocurrency exchanges. With more and more people looking to buy, sell, and trade cryptocurrencies, the number of exchanges has skyrocketed.
However, one noticeable trend amongst the major exchanges has been the amount of Bitcoin (BTC) that has been leaving them over the past 13 months. According to data from on-chain analytics firm Glassnode, Coinbase, Kraken, and Gemini have seen more than 500,000 BTC leave their platforms in the last year.
Coinbase is the largest of the three exchanges and holds the most amount of Bitcoin. At the end of 2021, the exchange held over 690,000 BTC. This number has since dropped to roughly 485,000 BTC as of the beginning of 2023.
Kraken, the second-largest exchange by Bitcoin holdings, has seen its balance drop from 195,000 BTC at the end of 2021 to 83,000 BTC at the start of 2023. Lastly, Gemini, the third-largest exchange by Bitcoin holdings, has seen a significant drop in its balance as well. At the end of 2021, the exchange held approximately 315,000 BTC. As of the beginning of 2023, the exchange now holds roughly 133,000 BTC.
This trend of outflows from centralized exchanges could be attributed to a number of different factors. One of the most likely reasons for the outflows is the increasing popularity of DeFi protocols, which allow users to store and trade cryptocurrencies without relying on a third-party custodian. Additionally, the increasing number of institutional investors entering the space could also be a factor in the outflows.
It is unclear why exactly the outflows from Coinbase, Kraken, and Gemini are so much higher than other exchanges, but the trend does seem to be continuing. As more and more investors move away from centralized exchanges in favor of more trustless solutions, it is likely that the outflows from these exchanges will continue.