Net exchange outflows have soared in the wake of FTX’s bankruptcy, inciting crypto holders everywhere to look after their own digital assets.
Data from on-chain analysis firm CryptoQuant shows that over $8 billion in crypto has flowed off of centralized exchanges since November 6th – when worries about FTX’s solvency began to propagate.
- Since Binance CEO Changpeng Zhao’s worrying statements about FTX last week, $3.7 billion worth of Bitcoin has been withdrawn from centralized exchanges. About $2.5 billion in Ether have also left exchanges, alongside about $2 billion worth of stablecoins.
- Centralized exchange reserves have now touched their lowest level since November 2018, now at just 2.089 million Bitcoin, and 19.999 million Ether.
According to CryptoQuant, within a week from November 6, affected by the FTX crash, a total of $3.7b in Bitcoin, $2.5b in Eth, and more than $2b in stablecoins have flowed out of CEXs. Cex Reserve fell to its lowest level since November 2018. https://t.co/hpWug1ZR9y pic.twitter.com/sJBXCn0zT2
— Wu Blockchain (@WuBlockchain) November 14, 2022
- Last Wednesday, CryptoQuant noted that over 80,000 BTC had left exchanges within a 24-hour period. The firm framed the data as “investors losing confidence in central exchanges.”
- This was one day after crypto exchange FTX froze user withdrawals, and requested Binance’s help in addressing a so-called “liquidity crunch.”
- FTX faced overwhelming withdrawal demand leading up to the freeze, due to rumors that the exchange wasn’t fully backing its users’ assets. On Friday, FTX filed for bankruptcy.
- Some are now worried that CryptoCom could be facing liquidity trouble following strange on-chain behavior between itself and Gate – a rival exchange.
- CryptoQuant CEO Ki Young Ju analyzed CryptoCom’s wallet movements on Monday, finding that its stablecoin reserve has fallen by 90% over the past 7 months. Meanwhile, the number of Ether withdrawals at the exchange has reached an all-time high.