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Introduction
FTX Exchange was a leading centralized cryptocurrency exchange specializing in derivatives and leveraged products. Founded in 2018 by MIT graduate and former Jane Street Capital international exchange-traded funds trader Sam Bankman-Fried, FTX offered a range of trading products, including derivatives, options, volatility products, and leveraged tokens. It also provided spot markets in more than 300 cryptocurrency trading pairs such as BTC/USDT, ETH/USDT, XRP/USDT, and its native token FTT/USDT.
In early November 2022, the exchange and the companies in its orbit began a steep fall from grace.
Axelar provides a decentralized network and tools that help connect dApp builders with multiple blockchain ecosystems, applications, and users for frictionless cross-chain communication. Axelar consists of a protocol suite, tools, and APIs, designed to break down the barriers to cross-chain communication.
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Approach
In this analysis we are going to answer these questions
- Did bridge activity spike over the last 7 days? If so, to what ecosystems?
- How much net outflows from FTX onto Ethereum?
- Did any of these outflows flow across Satellite to another destination chain?
Study Period
we are going to analyze data over the last 7 days and also 14 days (On over-time and average charts in order to be able to compare data before and after collapse)
Used Tables
> axelar.core.fact_msg_attributes. > > ethereum.core.ez_eth_transfers > > ethereum.core.ez_token_transfers > > ethereum.core.dim_labels
Findings
The results of this dashboard showed that after the fall of FTX, the number of satellite bridges and bridged volumes decreased in the last seven days and decreased compared to the first days after the collapse. The most bridged volumes are related to the USDC token, followed by ETH. But the largest number of transactions and the largest number of bridgers are related to the AXL token. After AXL, the largest number of bridgers and transactions is related to the USDC token. The top destination chain in the days after the collapse in terms of bridged volume is related to Ethereum. It is also the best chain in terms of the number of transactions and the number of bridgers. In the last seven days, most of the bridgers and volumes are in the Ethereum chain. The highest output volume from FTX on the Ethereum chain is on November 7 with $2.5B. But in the last seven days, the withdrawn volumes have decreased a lot. The top destination exchange in the Ethereum chain is related to the Binance exchange and after that Coinbase.
In the days after the fall of FTX, we saw an increase in the number of satellite bridges, an increase in the volume of transmission and an increase in the average daily volume. But in the last seven days, as you can see, after November 10 and 11, we see a decrease in the number of bridges and the daily volume. The highest number of bridges and volumes can be seen in the first 4 days after the FTX crash.
The largest volume bridged through the satellite bridge during the collapse is related to the USDC token. After that, ETH and AXL tokens have the most bridged volumes.
The largest number of bridges during the collapse is related to AXL token, followed by USDC. In the diagram, you can see the number of bridges and the number of bridgers.
The largest destination chain at the time of the collapse was interacting with the Ethereum network with a bridge size of 21.25 million. After the Ethereum network, the most interaction was with the OSMOSIS network with 1.7 million, followed by Poligan with 1.4 million.
Also, the top destination chain during the collapse in terms of the number of transactions and the number of bridgers is related to the Ethereum network. The OSMOSIS network is after Ethereum in terms of the number of transactions, and after it is the Polygon network. But in terms of the number of bridgers, the Polygon network is higher than the OSMOSIS network.
You can see the changes in the last seven days of Bridgers after the collapse of FTX in different destination chains, as you can see, the dominant color in the last seven days is related to the Ethereum network, as a result, the top destination in terms of the activities of Bridgers is related to the Ethereum network is. But in the last seven days, after Ethereum, on most days, the Polygon network has been more than the OSMOSIS network as the destination of bridgers.
In the days after the collapse of FTX, as well as in the last seven days, by a significant difference, the largest volume transferred was in interaction with the Ethereum network, and this volume has decreased in the last two days. After the Ethereum network, in the last seven days, the OSMOSIS network has interacted with more volumes than other networks.
The largest volume of withdrawals from FTX to the Ethereum network in the days after the collapse is on November 7. In the last seven days, the transfer volumes have decreased significantly compared to the initial days after the collapse. In another chart, you can see the volumes entered and exited in the days after the collapse
The top destination in the days after the collapse of FTX in the Ethereum chain is related to Binance, which is the destination of the largest volume (54.9 percent), and after that, Coinbase is the destination of 14 percent of the volumes.