What Happened to Solana After FTX's Collapse?
What is the Question?🚨
In this dashboard i will take a look at Solana network and what happened after FTX’s collapse to it.
Analyzed Topics:
- What has been happening in the Solana defi ecosystem since the FTX’s Collapse?
- Has activity increased? Decreased? Are users flocking to any particular defi apps? Are they leaving the ecosystem?
- Chart flows in and out of centralized exchanges from the Solana ecosystem.
- Has staking behavior changed on Solana since FTX’s Collapse?
Introduction🚩
What is Solana?
Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, it is an open-source project currently run by Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs.
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What is Defi?
Short for decentralized finance, DeFi is an umbrella term for applications and projects in the public blockchain space geared toward disrupting the traditional finance world. DeFi refers to financial applications built on blockchain technologies, typically using smart contracts. Smart contracts are automated enforceable agreements that do not need intermediaries to execute. Anyone with an internet connection can access them to perform financial transactions and many other activities.
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What is FTX?
A cryptocurrency exchange headquartered in The Bahamas that caters to countries outside the U.S. Within the U.S., customers use FTX.US. Founded in 2019 by Sam Bankman-Fried and Gary Wang, FTX gained prominence when it acquired the Miami Heat's basketball stadium in 2021 and renamed it FTX Arena. In the same year, FTX acquired naming rights to the TSM e-sports organization, which was renamed Team SoloMid FTX.
Method⚡
This dashboard examines the recent patterns of staking Solana's User Action Patterns in light of FTX's Collapse.
For this, I tried to track the effects of the FTX's Collapse on Solana’s ecosystem. For this I used ==“solana.core.fact_events”== table and found the count of unique users, transactions types & Stake and UnStake volume over October 2022 and categorized those by ‘2022-11-07’, the date of FTX's Collapse.
Findings👀
The count of daily transactions and average transactions count per users is the highest in Nov 10, 9 & 11th, 3, 2 & 4 days after FXT’s Collapse, respectively.
In Nov 9th, two days after FXT’s Collapse, the highest count of unique users transacted with Centralized exchanges, at 17.53K users count.
Overall, before FTX’s Collapse the average transactions per users for Centralized exchanges was at roughly 2 transactions and for Decentralized exchanges roughly 30, but after FXT’s Collapse these numbers fell to roughly 1.5 & rose to 25, respectively.
Findings👀
The first above chart shows the volume of Stake and UnStake SOL since second half of October, 2022, as of that can be seen in Nov 10th, three days after the day of FTX’s Collapse, the UnStaking volume dramatically raised from 188K in Nov 9th, to 8.4M in Nov 10th.
The average volume chart shows the average volume of Stake and UnStake SOL since second week of October, 2022, as of that can be seen in Nov 7th, the day of FTX’s Collapse, the UnStaking volume dramatically raised from 107 in Nov 6th, to 2.4K in Nov 7th.
Also in Nov 7th, the day of FXT’s demise, the UnStaking volume is so considerable rather than other days. (2.4K Unstaking against to 95 Staking volume.
The transactions and unique users count have dramatically increased till Nov 10th, three days after FTX’s Collapse, that reached at the highest point.
Findings👀
- DEFI Transactions
- As shown on following first chart, decreasing trend for DEXs transactions after the FTX’s Collapse, but in other hand the share of daily transactions count increased on dapps and defi.
- The second Bar chart shows, Pyth had most number of the transactions among all DEFI since second half of October, 2022.
- DEFI Users
- As shown on fourth chart since FTX’s Collapse, Solend had most number of the users among all DEFI with roughly more than 60% in daily.
- As of cumulative and animated charts in the end, transactions count on dapps growth sharper than others.
Findings👀
Cex’s Intflow Metrics
- As can be seen in the first chart the daily percentages of transactions count for Binance increased since FTX’s Collapse day (Nov 7th) from 45.5% per day to 60%.
- As shown on first three chart in overall, coinbase and huobi global are two CEXs which had most number of the transactions among all CEXs with combined roughly 90% per day. next three CEXs are kraken, bybit and gate.io with combined 9.86% of transactions per day.
- Bar chart shows mostly steady upward trend for CEX intflow average volume after the FTX’s Collapse in which Binance and coinbase had most share of them in each day and most intflow volume of Sol occurred on Nov 9th on Binance with more than 17.7M Sol volume after FTX’s Collapse, but the average volume inflowed to FTX dramatically decreased after FTX’s Collapse.
- Daily Depositors decreased after FTX’s Collapse.
Cex’s Outflow Metrics
- As can be seen in the chart above the daily percentages of transactions count for Binance and Coinbase increased since FTX’s Collapse day (Nov 7th) from 45.5% per day to 60% and 10 to 22%, respectively.
- As shown in overall, Binance, coinbase and bybit are two CEXs which had most number of the transactions among all CEXs with combined roughly 90% per day. next three CEXs are kraken, huobi global and gate.io with combined 9.86% of transactions per day.
- Bar chart above middle shows in Nov 4, 7th the most average volume outflowed from Kucoin and in Nov 12th the most Outflow volume of Sol occurred on FTX with more than 38K Sol volume.
- Daily withdrawer increased over Oct.
Conclusion💡
- On November 9, 10 & 11th, three day after the after FTX’s Collapse, the number of daily transactions, Unique Users, and average transactions all reached all-time highs.
- Since the FTX’s Collapse, Binance and coinbase have seen a significant raise in the number of users and transactions they receive from CEXs on the Solana network.
- Since the FTX’s Collapse, the number of $SOL transfers to Solana network CEXs has increased, with the majority of these transactions being sent to Binance , coinbase, kraken, and bybit.
- Dapps show more rapid development in transaction counts compared to others, as shown by both cumulative and animated charts.