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Not Your Keys
Bounty Question: In wake of the issues surrounding FTX, the old adage "not your keys, not your crypto" reinforces itself. Let's see how this played out during the fallout.
Did bridge activity spike over the last 7 days? If so, to what ecosystems? At a more granular level, track net outflows from FTX onto Ethereum. Did any of these outflows flow across Satellite to another destination chain?
AXELAR Satellite: Satellite is a decentralized cross-chain asset transfer application, which enables users to transfer assets they hold on a source chain to an address on a different destination chain. Upon launch, Satellite will support the transfer of native Terra assets such as LUNA and UST between several EVM and non-EVM chains such as Terra, Avalanche, Polygon, Ethereum and Fantom, with Moonbeam added shortly thereafter.
Methodology
We will investigate several areas of AXELAR bridging activity, particularly those relevant to the FTX crash timeframe including
- AXELAR Satellite: Before and After FTX Crash
- Part I. Satellite’s Bridging Activity
- Part II. Satellite’s Bridging Networks
- Part III. Satellite’s Bridging Tokens
- Outflow of FTX: Before and After Crash
- Part IV. Net Outflows from FTX onto Ethereum
- Part V. Did Any of These Outflows Flow Across Satellite to Another Destination Chain?
Part II compared the bridging activities of AXELAR Satellite by destination chain before and after the FTX crash, as well as the daily volume. Among the other destinations, Ethereum has the highest population density.
Interestingly, after the FTX collapse, the average number of transactions, volume, and bridgers increased for all destinations.
When compared to other destinations, Ethereum had a significant daily volume of more than 60% to 90%.
In this section, we will investigate AXELAR Satellite's token-based bridging activities.
In terms of transaction count, AXL has the most average daily transactions, with 1850 txs per day after the FTX collapsed from 1473 previously.
USDC, on the other hand, has the highest proportion in terms of average daily volume USD, at $5 million before the collapse of FTX and nearly $7 million per day after.
Furthermore, USDC covered more than 90% of the total volume every day in terms of daily bridging volume.
The heatmaps above show the average bridging transactions before and after the FTX crash (left).
Friday has the most bridging activities before the crash.
Unlike the days following the FTX crash, Thursday has an intriguing average transaction count.
On November 7, FTX fell, causing the crypto market to fall.
The graphs show the daily bridging actions of the AXELAR Satellite split by two time periods, before and after the FTX catastrophe. The charts show the daily transaction count, volume in USD, bridges, and their daily average.
We can see that after the FTX collapsed, all values increased dramatically.
In addition, following the demise of the FTX, daily AXELAR Satellite bridging volume increased from $5.7m to $7.6m.
This section details the net outflow of FTX onto the Ethereum network.
We can see that following November 7th, both transactions, volume, and users rose considerably, with more than $2.3 billion outflow from over 30k FTX users.
Moreover, the daily chart shows the top ten outflow tokens from FTX in terms of volume. The top ten outflows from FTX are clearly dominated by USDC (41%), ETH (21%), USDT (15%), and FTX (10%).
The pie chart on the left depicts the top ten known destinations by volume from FTX in the last 30 days. Approximately 60% of FTX users transferred $2.5 billion to Binance.
Furthermore, the chart on the right depicts the source of FTX outflow. The outflow in the last 30 days has been interesting, with more than $13 billion from the main FTX exchanges one and two, followed by around $1 billion from the FTX US Hot wallet.
The graphs show the AXELAR Satellite's bridging data from FTX users.
The 12th of November saw the highest bridging volume of nearly $500k from just three transactions.
However, we can conclude that there is little difference bridging volume from the FTX users before and after the FTX collapse.
The graphs compare normal users' AXELAR bridging activity to that of FTX users, as well as their proportion in terms of bridging count and volume.
On a daily basis, we see roughly $20k to $40k in bridging volume from FTX users. excluding November 1st and 12th The volume has been greatly increased.
Meanwhile, AXELAR Satellite has approximately 8% FTX users from November 1st, 2022.
Conclusion
- On November 7, FTX plummeted, leading the cryptocurrency market to decline as well.
- Following the death of the FTX, AXELAR Satellite bridging volume surged from $5.7 million to $7.6 million per day.
- Ethereum had a considerable daily volume of more than 60% to 90% when compared to other destinations.
- AXL has the most average daily transactions, with 1850 txs a day after the FTX collapsed, up from 1473 previously.
- In terms of daily bridging volume, USDC covered more than 90% of the overall volume every day.
- Following the 7th of November, both transactions, volume, and users increased significantly, with over $2.3 billion outflow from over 30k FTX users.
- From the top ten known FTX destinations by volume in the previous 30 days, the majority of FTX consumers transferred $2.5 billion to Binance.
- The 12th of November saw approximately $500k in bridging activity from FTX customers from just three transactions.
- From November 1st, 2022, AXELAR Satellite has around 8% FTX customers compare with non-FTX users.
- However, we can deduce that bridging volume from FTX customers differs just a little before and after the FTX collapse.
AXELAR Dashboard - Not Your Keys
- Dashboard by h4wk#6690 - Last updated 19th November, 2022.
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- Data from flipsidecrypto