The FTX affair is profoundly changing the relationship of users to centralized exchange platforms (CEX). They have been leaking massively from the latter for a month, in favor of more secure solutions.
Users withdraw $2.9 billion from exchanges
We explained it to you in the middle of the month, the exodus of investors began on the centralized exchange platforms. And the trend has only continued since, according to a new report from Glassnode. The analysis firm has indeed quantified the withdrawals made on the CEX during the month: the sum reaches 2.9 billion dollars at the current rate.
And the trend is accelerating: we see that more and more bitcoins (BTC) were withdrawn during the month of November.
The FTX case prompted users to withdraw their funds from centralized exchanges
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Bitcoin Outflows are the highest recorded for 4 years. The trend was already towards withdrawal for users, but this has been confirmed since October:
Number of bitcoins (BTC) present on the exchange platforms
For its part, the price of BTC continues to struggle after having suffered successive substantial falls. Stuck around $16,500 last week, he operated a new dive last nightand is trading this morning around 16,100 dollars.
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A paradigm shift?
All of this shows that the prevailing ideology, which was that the “big” platforms were too big to collapse, was wrong. Just as in traditional banking, no entity is apparently immune : a lesson that investors have learned at considerable cost in recent weeks.
The fallout from the case is probably far from over, but is already taking shape a real paradigm shift for the ecosystem. The rush towards cold wallets like those of Ledger is no accident: users want to regain control of their cryptocurrencies, for fear of seeing them blocked.
For some, the extensive reputational damage to the industry is a minor disaster in itself. For others, it is a purge to return to ideals of decentralization more in line with the origins of cryptocurrency. Which interpretation will prevail? The ecosystem is learning the lessons of its biggest crisisand it will take some time.
👉 Also in the news – FTX US: Alameda Research allegedly withdrew $200 million worth of cryptocurrencies before the fall
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Source: Glassnode Studios
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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