What is a CEX?

Centralized exchanges (CEXs) are organizations that coordinate crypto trading on a large scale, using a similar business model to traditional asset exchanges like stock exchanges.

Exchanges are essentially marketplaces. They are useful when a large number of people may be simultaneously trying to buy and sell the same type of asset. 

What is a Bear market?

A bear market is when a market experiences prolonged price declines. It typically describes a condition in which stocks prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.

Methodology

In this dashboard, we are looking to see what exchanges users are withdrawing the most funds from since May 2022 and how the withdrawals changed in size and frequency since May 2022. Additionally, we will look at exchanges withdraws from CEX on both Ethereum and Polygon.

We will visualize the following:

• Top exchanges by bear market withdraw activity

• Daily withdraws by CEX

• Withdraws metrics broken up by user group

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Observations

• In terms of Users and Events Coinbace, Binance Kucoin, FTX, Crypto.com, and Gemini make up more than 75% of the CEX withdraws.
• Over 584K wallets have withdrawn funds from Coinbace on Ethereum since May 2022 this make up almost 1/3 of all CEX withdraws in the current Bear market.
• The two most popular tokens to withdraw from CEXs Since Ma 2022 have been USDC and USDT.

Observations

• There have been a large decline in users withdrawing funds from CEXs between November 2021 and now. In this time period the pecentage of withdrawls from FTX, Coinbace, and Binance grew to most of the Withdrawls.
• Currenlt Binance has the highes amount of CEX withdrawls

on-rampers are users that are sending tokens from CEX to wallets to use those tokens in NFT marketplaces, DeFi or d apps where Exchange Hodlers hold their tokens In a self custodial wallet, but don't interact with the contracts on the blockchain.

Observations

• Since the crypto Market turned in November 2021 the percentage of Exchange HODLers grew from about 50% to about 75% of the users taking their funds off exchanges.
• The ratio of CEX on-rampers to HODLers has been consistently increasing since 2019.
• The average and median on-ramper CEX tranaction size has dropped to the same as an extange HODLerssince January 2022.

Ethereum Exchange Flows

Polygon Exchange Flows

Observations

• In terms of Users and Events mexc, gate.io, and binance make up more than 75% of the CEX withdraws.
• Over 10K wallets have withdrawn funds from mexc on polygon since May 2022 this make up over 50% of all CEX withdraws in the current Bear market.
• Only a few CEXs on polygon have a significant number of withdrawals

Observations

• The volume of CEX withdrawals has stayed similar since June 2022
• Consistently mix and gate.io have made up the majority of all CEX withdrawals
• The smaller CEXs have less than 10 withdrawals most days on Polygon

Observations

• Since the beginning of June 2022 the percentage of Exchange HODLers has grown from about 45% to about 51% of the users taking their funds off exchanges.
• The ratio of CEX on-rampers to HODLers has been consistently increasing since June 2022.

Conclusion

In terms of Users and Events Coinbace, Binance Kucoin, FTX, Crypto.com, and Gemini make up more than 75% of the CEX withdraws on Ethereum. Over 584K wallets have withdrawn funds from Coinbace on Ethereum since May 2022 this make up almost 1/3 of all CEX withdraws in the current Bear market. Since the crypto Market turned in November 2021 the percentage of Exchange HODLers grew from about 50% to about 75% of the users taking their funds off exchanges on Ethereum. On rampers make up a much large percentage of users taking their funds off extanges on Polygon than on Ethereum.