Centralized cryptocurrency exchanges noticed at the very least $20.7B in withdrawals, as FTX collapsed.
The collapse of FTX, on the time one of many world’s largest centralized cryptocurrency exchanges, prompted customers throughout centralized exchanges to take custody of their very own funds. As customers withdrew their funds off centralized cryptocurrency exchanges (CEXs), trade balances dropped by $20.7 billion, from $123.6 billion on November 2 to $102.8 billion on November 13. Inside lower than a fortnight, CEX balances of the highest six main cryptocurrencies had fallen by roughly 16.8%.
Over $7.5B withdrawn from FTX in week of collapse
On November 2, CoinDesk printed an article which alleged that buying and selling agency Alameda Analysis’s leaked steadiness sheet confirmed it was largely reliant on sister firm FTX’s trade token FTT. Whereas this set off some jitters in the neighborhood, trade balances solely dipped barely earlier than rebounding.
On November 6, Binance CEO Changpeng Zhao (CZ) tweeted that Binance would promote its whole FTT holdings. This prompted a lack of confidence in FTX and marked the beginning of the scramble to withdraw funds from CEXs.
FTX customers rushed for the exits, and by the point FTX halted withdrawals on November 8, over $7.5 billion of the highest six main cryptocurrencies had been withdrawn from the trade since November 2. Nearly all of FTX withdrawals had taken place following CZ’s tweet, with over $4.9 billion withdrawn within the three days from November 6 to eight.
From November 2 to eight, whole crypto trade balances fell by $5.3 billion to succeed in a complete of $118.2 billion. Between November 6 to eight, the lower in CEX balances was recorded at $8.3 billion. This lower represented the quantity that customers had withdrawn solely off centralized crypto exchanges, pushed by fears round potential contagion results – together with vital establishments that face large losses in wake of FTX’s collapse.
FTX’s native utility token, FTT plunged 90% wiping out over $2.6 billion
FTT, whereas nonetheless tradeable, has seen its price plummet by 90%, collapsing alongside the now-defunct centralized trade. FTT broke its ~$22 assist and reached $2.10 on November 13, dropping $2.6 billion in market capitalization (-90.4%) and shrinking to simply $0.2 billion.
Methodology
The examine seemed on the two largest cryptocurrencies (BTC, ETH) and 4 largest stablecoins (USDT, USDC, BUSD, DAI) by market capitalization, and examined their balances on centralized cryptocurrency exchanges, together with Binance, Coinbase and Kraken. The information was taken from Glassnode, for the interval of October 23 to November 15, 2022.
The costs for every day have been transformed to USD for at 00:00 UTC on the next day. The sum of all six belongings have been additionally calculated each day, to find out the entire quantity of trade balances.
In case you use these insights, we’d respect a hyperlink credit score to this text on CoinGecko. A hyperlink credit score permits us to maintain supplying you with future data-led content material that you could be discover helpful.
In search of extra data on what occurred with FTX? Take a look at this one we did reviwing the Market Share of Crypto Exchanges, primarily based on Day by day Trading Quantity.