Users Take Crypto Security Into Their Own Hands: Bitcoin Supply on Exchanges Drops Dramatically

• Bitcoin’s supply on centralized crypto exchanges has dropped drastically from 11.85% to 6.65% over the past year.
• This is a historic drop, which indicates the rising trend of self-custody among users.
• The fall of Sam Bankman-Fried’s $32 billion crypto empire has highlighted the importance of self-custody for users.

Recent developments in the crypto space have seen an unprecedented drop in the amount of Bitcoin stored on centralized exchanges. According to crypto analytics company Santiment, Bitcoin’s supply on centralized crypto exchanges has dropped from 11.85% to 6.65% over the past year, a historic drop that illustrates the rise in interest in self-custody.

The move towards self-custody is seemingly being driven by users’ preference for taking their crypto security into their own hands, as evidenced by the fall of Sam Bankman-Fried’s $32 billion crypto empire. Bankman-Fried’s collapse has highlighted the importance of self-custody for users, who have now begun to take a more active role in safeguarding their digital assets.

It is clear that users are increasingly aware of the risks associated with leaving crypto assets on centralized exchanges. While exchanges are generally secure and reliable, there are always potential risks that users must consider before entrusting their funds to a third-party. The security of user funds is of the utmost importance, and it appears that users are now taking steps to ensure that their assets are kept safe.

The drop in Bitcoin’s supply on centralized exchanges is a testament to the growing trend of self-custody among users. It is clear that users are increasingly aware of the risks associated with leaving their crypto assets on exchanges, and are taking steps to ensure their funds are kept safe. This is a positive sign for the crypto industry, as it indicates that users are becoming more educated about the importance of taking responsibility for their own security.