On-chain analytic reveals that Ethereum and stablecoins are running out of CEXs or centralized exchange as the consequences of FTX exchange fall.
Blockchain analytics performed by the researcher of Nansen has highlighted the seeping away of Ethereum and stablecoins from cryptocurrency centralized exchanges at the back of the fall down of FTX exchange.
Sandra Leow, Nansen research market analyst, posted a thread on social media a few days ago unpacking the existing condition of decentralized finance or DeFi with a particular focus on the flow of Ethereum as well as stablecoins from exchanges.
The ETH 2.0 deposit agreement contains more than 15 million ethereum, while some 4 million wETH or Wrapped Ether is held in the Wrapped Ether deposit agreement. Web3 infrastructure development and investment company Jump Trading grasp more than 2 million Ethereum coins and are considered the 3rd most prominent owner of Ethereum in the ecosystem.
Gemini, Bitfinex, Kraken as well as Binance wallets feature in the most extensive Ethereum balances list. At the same time, the Arbitrum layer two roll-up links also own a considerable amount of Ethereum tokens.
According to Nansen, a research market analyst, in letters with Cointelegraph, the rise in the percentage of Ethereum held in smart agreements can be viewed as a sign of Ethereum running out into different decentralized finance products. This takes account of custody services, staking contracts as well as decentralized exchanges.
The recent fall down of FTX exchanges might also have resulted in panics for users holding digital assets with 3rd party custodians such as centralized exchanges. Sandra Leow highlighted the realism that the security of money held on exchanges might not be assured.
According to Leow,” There is an implication for the quote. “Not the keys, not the tokens,” and this is particularly vital given times like these.”
Exchange flow dashboard reveales that Jump Trading shows up as a body with considerable taking out volumes from cryptocurrency exchanges compared to its deposits. She also presented a lot of possible reasons for the movements or flow of Jump Trading coin, noting the exposure of the company to SRM or liquidity hub Serum tokens.”
“ Because of their exposure to the fall down of the FTX exchange, they need to relieve a number of tokens out of exchanges in want of liquidity. Couple of days ago, we have witnessed Jump Trading pulling out various cryptocurrencies, such as:
- As well as various types of coins from different crypto exchanges
A considerable number of Ethereum coin has run out of many big crypto exchanges over the past couple of days too. $829 million Ethereum tokens disappears from Gemini. On the other hand, Upbit witnessed $797 worth of Ethereum transferred from its platform, while $597 million worth of ETH moved away from Coinbase. Bitfinex, also one of the biggest crypto exchanges, also saw about $54 million ETH pulled out from its account.
The past couple of weeks following the announcement of the FTX collapse also saw a considerable number of stablecoins moved off crypto exchanges. Almost $294 million worth of stables coins withdrawn from Gemini platform, at the same time, Bitfinex saw almost $173 million worth of Ethereum flowed out of its account. Coinbase and KuCoin followed next with $108 million and $138 million worth of stablecoins moved from the two crypto exchanges, respectively.
According to Sandra Leow, the flow of stablecoins, telling Cointelegraph, which outflows usually indicate stable coins holders are on the sideline and capital isn’t flowing into the crypto market.
According to her, “maybe the market infectivity, as well as extended bear market, lessen the desire for investors and traders alike to be investing actively and involved in the crypto market.
Nansen has played a vital part in providing critical insights into main ecosystem occasions in 2022. This blockchain analytic company looked into on-chain data to piece jointly the fall down of Terra last May of the same year.
Then it followed suit with a deep dive into the fall down of FTX, with proof suggesting conspiracy and agreement between the crypto trading company Alameda Research and exchange. . Both companies were established and managed by Sam Bankman-Fried.