FTX impacts on Ethereum Chain

    Introduction

    • In this Analysis, You will read about the Ethereum chain. In the last couple of days, Due to the FTX crash, the All Crypto markets faced another crash. We want to know how this event impacted the Ethereum Chain. I went through Ethereum and analyzed four Key parameters:

    • Staking

    • Swaps

    • Platforms

    • Transfers Between Chain and CEXs and Vice versa.

    Analyzed by Hess - Reading Time Almost 15 Min.

    What is Ethereum?

    • Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. Ethereum was conceived in 2013 by programmer Vitalik Buterin
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    Swaps

    • Like Staking activities, The total daily Number of swaps increased on Ethereum Chain after the FTX crash. The highest number of transactions went through Uniswapv2 and Uniswap v3.

    • The total number of transactions on Uniswap became 2x higher than the swaps before the FTX.

    • Overall, 46% of transactions went through Uniswap-v2. Uniswap V3 with 40% of swap is the second top platform based on transactions.

    • Sushiswap with 9% of transactions which was 159K transactions was the third top platform on the Ethereum chain over the last 15 days.

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    Platforms

    • During the Crash, The activities of some platforms drop but some of them increase. In this case, Mostly DEXs and Bridges Increased too much. One of the platforms that faced a huge volume and transactions was Gnosis Safe. Gnosis is a vault. It seems users transferred their assets to a vault to keep their funds safe. Almost 3.5B US dollars were transferred to Gnosis Safe. There were other platforms like 1inch, Hop protocol that faced too many transactions and volume after FTX crash.
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    Transfer From CEX to Chain and Vise Versa

    In order to understand the impacts on the Ethereum chain, I analyzed transfers from Chain to CEXs and CEXs to chain.

    • As you can see, The total daily number of transfers from CEXs to Chain was almost 2.5x higher than transfers from chain to CEXs. After the FTX crash, The total daily number of transfers from Chain to CEXs increased but after two-three days decreased.

    • As you may know, FTX is an exchange. A lot of rumors spread that other exchanges will crash. After one week from FTX, The total number of transactions from CEXs to chain increased significantly. The highest number of transactions from CEX to chain was 151k while the highest number of transactions from CHain to CEX was 69K.

      Before FTX, the daily number of transactions was below 50K.

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    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: @hessaminanloo

    :t-rex: Discord: hess#0890

    :calendar: Analyze Date: 2022/NOV/19

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    What Happened to FTX?

    • Last week, FTX declared bankruptcy. Bankman-Fried resigned. The firm said some money had disappeared. And experts say hundreds of millions of dollars may have been lost.

    The collapse of FTX is a shock to the cryptocurrency industry, which has seen a fair number of problems this year.

    Staking

    • Unlike the Rumors, The total daily number of stakers and stake transactions increased after the FTX crash on ETH. Especially the direct stakers. For a short time, After FTX, the total daily number of users decreased but quickly increased more than the days before FTX. Overall, Lido had the highest number of unique users. This platform had 7.6K unique stakers in the last 15 days. Direct Staking has 766 unique users. Stkr has the lowest number of unique users.
    • The daily share of transactions show that transactions on Lido decreased after FTX crash. Direct staking shares increased and became from 9% up to 53%.
    • Overall, 64% of stake transactions was on Lido and 32% of transactions was Direct staking. Rocket Pool

    Daily Price of Staking ETH tokens

    • After the FTX crash, The Daily price of the main ETH dropped by almost 200$. Following that, All staking tokens decreased. Right now, The price of sETH, rETH, and Anker ETH have a higher price than ETH. The Only token that have less price in comparison to ETH is sETH2.
    • After the FTX crash, The total daily staked ETH increased. Almost a week later, The highest amount of ETH staked on November 13. Users staked more than 30K ETH which is worth around 40M Dollars. There was another day with a huge stake amount. On November 11, Users staked 20.5K ETH directly, 2.3K ETH on Lido, and 54 ETH on Stakewise.

    • Users staked 188M US dollars directly in the last 15 days. Based on Volume, Lido had the highest volume. Users staked 70M US dollars.

    • You may know that users can stake on Ethereum with 32 ETH. So, The average stake amount is 32. But the average staked ETH amount on Lido was 5.6ETH.

    • Based on Cumulative charts, We can see the slope of growth after the FTX crash. Unlike Users activities after FTX in Crypto markets, Ethereum more users staked ETH. The average staked ETH is more than days before FTX.

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    • A huge Volume went through DEXs after the FTX crash. Like the transactions, Uniswap had the highest volume in comparison to other pools.
    • The Daily swap volume on Uniswap V3 before FTX was 500-2B US dollars but after the FTX crash increased up to 4.9B US dollars.
    • Balancer had 55-60M US dollars volume before FTX but after FTX increased up to 355M US dollars.
    • The total swap volume on Uniswap was 29B US dollars in the last 15 days. The second top platform is Curve with 9.1B Volume.
    • Sushiswap has the lowest swap volume in comparison to other platforms.

    From Tokens:

    • Based on the total number of transactions, WETH is the most popular token on Ethereum. In 1M transactions users swapped WETH for another token.
    • Based on the Volume, Still, WETH is the most popular token with 13.3B US dollars. The second top token was USDC with 12.3B US dollars. We already know that most volumes went to Unsiswap-like transactions.

    To Tokens:

    • Based on transactions, Users swap from WETH.
    • WBTC with 31K transactions and 1.6B US dollars have the lowest numbers in comparison to the top 5.
    • Based on VOlume USDC with 13.1B US dollars have the highest volume in comparison to WETH. Almost all the top 5 tokens had similar activities.
    • After FTX Crash, The daily share of swaps to Stablecoins increased and the daily share of swaps to other tokens increased. Before the FTX crash, Almost 18-20 of transactions were Swaps to Stablecoins but after the FTX crash, The daily share of swaps to Stablecoins increased up to 30%. Overall, 75% of transactions were swaps to other tokens and 24% of transactions was swap to Stablecoins.

    Unlike transactions, The Swap volume to Stablecoins was much higher than the swap volume to other tokens. Users swapped 21B US dollars for Stablecoins and Swapped 17B US dollars for non-stablecoins. After the FTX crash, The swap volume increased significantly. The daily volume before FTX was 700M to Stables and 700M to other tokens but after FTX increased up to 5B US dollars to stables and 2.8B US dollars to other tokens. After three days, The swap volume decreased and recently became like normal days.

    • Based on transactions, Hop protocol, Uniswap, and Augur are the top three platforms.
    • Based on Volume, Mev, Hop Protocol, and 1inch were the top platforms or contracts.
    • Based on Volume, Both paths had a similar volume. After FTX crash, The total daily volume from CEXs to chain increased up to 3.8B US dollars and the total daily volume from chain to CEXs increased up to 3.2B US dollars.