FTX collapse was followed by an increase in stablecoin inflows, and DEX activity


After FTX’s collapse, investors piled into stablecoins. An increase in DEX activity indicates a growing interest in self-custody options. Market Analysis on-chain data from Glassnode shows that Bitcoin’s (BTC), movements set a new record for the largest net decrease in aggregate BTC balances on Exchanges. This was achieved by a reduction of 72,900 BTC in just one week. Similar movements occurred in April 2020 (November 2020) and June 2022 (with the current outflow of around 2.25 million BTC. Bitcoin exchange balances and net position change line. Source: GlassnodeExchange exodus of Ether, but no stablecoins. While Ether (ETH), did not experience an all-time high outflow, 1.1 million Ether were withdrawn by exchanges in the past week. This is the largest 30-day decline in exchange balance since September 2020, according to Glassnode. It also occurred during the DeFi summer of the same year. Change in Ether exchange net position. Source: GlassnodeRelated to: Exchange outflows hit historical highs as Bitcoin investors take over custody. Contrary to Bitcoin’s falling balances on exchanges and Ether, stablecoins balances on exchanges remain net positive, which means that their balances are growing. On Nov. 10, $1.04 billion in USDT and USDC, BUSD, DAI, and USDC were transferred to exchanges. This Nov. 10 is the seventh largest stablecoin flow to exchanges. Stablecoins exchange net volume. Source: GlassnodeAccording Glassnode the current $41.186 trillion total is an all-time record due to the large influx of stablecoins into exchanges. Stablecoins are traded on exchanges. Source: GlassnodeBitcoin mining continues to sell Bitcoin miners are still under extreme pressure, and data shows that hash prices remain at all-time lows. Miners sold 9.5% of their treasuries, which is approximately 7.76 million BTC, due to record-low hash price. This is the largest monthly decrease in miner balances since September 2018. Bitcoin miner balances. Source: GlassnodeDecentralized and centralized altcoin performanceUtilizing asset basked to analyze performance between decentralized exchange (DEX) and centralized exchange (CEX) tokens, Delphi digital found that when comparing the basket prices to BTC, the DEX basket had gained 24% whereas the CEX basket is down 2%. Performance of the DEX and CEX baskets. Source: Delphi Digital. On-chain activity is correlated to overall Bitcoin, Ether, and altcoin market sentiment, with the current FTX chaos causing historic exchange outflows, and CEX tokens’ poor performance. The current chaos will likely lead to a steady increase in self-custodied cryptocurrency and an increase of DEX use. These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your own research before making any investment or trading decision.


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