Share this article
This One Graph Shows Ether Going From CeFi to DeFi: Glassnode
Data indicates DeFi could take a huge bite out of CeFi when it comes to the ether cryptocurrency.
By Muyao Shen
Updated Sep 14, 2021, 10:42 a.m. Published Dec 11, 2020, 5:29 p.m.
Make us preferred on Google
Data from blockchain analysis firm Glassnode indicates that decentralized finance (DeFi) may be taking a huge bite out of centralized finance (CeFi) when it comes to ether.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- The amount of fees on Ethereum spent on ether deposits to centralized exchanges has fallen to less than 1%, as of Dec. 9, 2020, from around 26% in late October 2017, according to Glassnode data.
- For most of 2020, almost all fees spent on transactions involving centralized exchanges (CEXs) were used for ether withdrawals.
- The dominance of fees on Ethereum spent on transactions on CEXs in total also has dropped sharply in 2020.
Or as Glassnode tweeted earlier today on the data put it:
From #CeFi to #DeFi in one picture.
— glassnode (@glassnode) December 11, 2020
The amount of fees on #Ethereum spent on $ETH deposits to centralized exchanges has fallen from ~25% in 2017 to less than 1% today.
Almost all fees spent on txs involving centralized exchanges in the past months were used for ETH withdrawals. pic.twitter.com/nvzGcwgxcC
- DeFi has been grabbing the headlines since the summer as many investors and traders have been turning to these semi-autonomous exchanges and lenders, mostly built on the Ethereum blockchain.
- At the time of writing, there is approximately $14.18 billion in total value locked in DeFi, according to popular data analytics site DeFi Pulse, a significant jump from around $662 million in the beginning of the year.
- Maker, WBTC, Compound and Aave are currently the top DeFi protocols by total collateral locked; all are based on the Ethereum blockchain.
- CEXs, including some of the biggest players in the space, have also been rolling out news business initiatives with DeFi features.
- In an interview with CoinDesk previously, Chief Executive Changpeng Zhao of the biggest crypto exchange by daily spot trading volumes, Binance, said he fully expects DeFi to one day cannibalize his CEX business.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Gold tops $5,000 as bitcoin stalls near $87,000 in widening macro-crypto split: Asia Morning Briefing
Bitcoin’s onchain data points to supply overhang and weak participation, while gold’s breakout is priced by markets as a durable macro regime shift.
What to know:
- Gold’s surge above $5,000 an ounce is increasingly seen as a durable regime shift, with investors treating the metal as a persistent hedge against geopolitical risk, central bank demand and a weaker dollar.
- Bitcoin is stuck near $87,000 in a low-conviction market, as on-chain data show older holders selling into rallies, newer buyers absorbing losses and a heavy supply overhang capping moves toward $100,000.
- Derivatives and prediction markets point to continued consolidation in bitcoin and sustained strength in gold, with thin futures volumes, subdued leverage and weak demand for higher-beta crypto assets like ether reinforcing the cautious tone.
Top Stories
