Adedeji Owonibi, mentioned that lack of regulation in Nigeria’s crypto space permits various practices to go unmonitored.
A surprising amount of Ether is locked up in decentralised finance (DeFi) contracts, with the rate consistently increasing each month. On the other side of the field, Ether held on centralised exchanges continues to decline, as more investors look to the DeFi industry.
According to Glassnode analytics, there’s near twice the number of Ether in DeFi contracts than on exchanges.
— glassnode (@glassnode) May 6, 2021
As shown in the chart, the Ether in Ethereum-based smart contracts is rising with a strong upward trajectory. Compared to centralised exchange-held Ether, which has seen a consistent decline over the past year and a half. Over the past year, the ETH held in smart contracts has increased from only 13% to a sharp nearly 23%, consistently gaining from the loss that exchanges are seeing. On exchanges, the ETH has dropped by more than 25%, falling from approximately 17% to only 12% held.
The “wrong” Ethereum enjoys gains
Meanwhile, Ethereum Classic has seen an upward tick in trading volume and value too. As the original Ethereum network, the cryptocurrency suffers a number of issues that the “new” blockchain has set out to resolve. But still, a network operating, the cryptocurrency has seen an influx of investment as fresh traders enter the market without the necessary insight – or just investors looking to make a well-timed trade.
Over the past week, Ethereum Classic has seen a whopping 300% increase in trading value. While those investing in ETC might be looking at massive profit opportunities, the risk is ever-present. In the past four years, the blockchain has seen multiple 51% attacks with investors losing funds from the lack of security. Moreover, the volatility is not free from seeing a massive drop after its quick gains. As always, when it comes to trading cryptocurrency, it’s advised that knowing the risks sets you up for better chances to take profits or hold responsibly.