Over 15% of ETH Supply Locked in Smart Contracts, BTC Dominance Declining
According to a report, over 5% of ETH is locked up in the WETH (wrapped ether) smart contracts, enabling it to interact with other tokens more easily. The report also notes that aside from “defi use cases via WETH, the largest ETH balances in smart contracts are for exchange multisigs.”.
While exchange multisigs simply “represent custodial passive holding, the other contracts (WETH, Compound, etc.) are all examples of how ETH is moving beyond the simple ‘store of value’ use case.” Also, taking note of the interesting similarities between what happened during the 2017 ICO boom and the current defi craze, the report states: While it might seem logical to conclude that investors will move profits from high-yield defi tokens into BTC, the report presents a different possibility: “Many investors now talk of ‘stacking wei’ as opposed to ‘stacking sats,’ signifying a potential shift in BTC’s status as the default store of value within crypto markets.”.
