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    Findings

    • The above charts show that since the FTX crash, except for the first days, activity on DEXs has significantly decreased, particularly in terms of the volume of transactions. The Solana chain's large transactions is primarily to blame for this.
    • DEXs saw a lot of activity in the early days of the crisis, but after a while, both the number of active users and transactions fell.
    • On the above normalized charts, it is clear that Solana was the chain that was most negatively impacted by the FTX crash, as evidenced by the sharp decline in the number of transactions and unique users on this chain's DEXs following the crash.
    • On the other hand, it is clear that alternative chains, such as Ethereum and Polygon, are gaining market share over time. This demonstrates that users want to transfer their assets to a more secure and reliable blockchain to prevent future crashes on those chains or platforms.
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    Findings

    • There weren't many new users joining DEXs during the FTX collapse, and there was no discernible upward or downward trend in the number of new users joining DEXs prior to or after the FTX crash. Also, Solana is the chain that has been most negatively impacted by the FTX collapse, and the primary reason for this may be that FTX heavily invested in this ecosystem and its tokens, and that during the crash, they were attempting to avoid bankruptcy by selling their invested Solana tokens.
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    Findings

    • The charts clearly show the impact of the FTX crash on Ethereum DEXs and swap transactions. The total number of swaps and swappers increased suddenly on November 8, the FTX crash day, to form a peak number of swaps over the past 60 days and then started to decrease until today.
    • We can see the same pattern on the swappers chart, and while the Balancer had the greatest share of this sudden increase, the maximum number of users over the past 60 days belongs to November 9.
    • Also, in the case of swap volume, we can see the same increase after the FTX crash, and the maximum swap volume over the past 60 days was on November 10 with Curve had the greatest share.
    • The other chart that can be used to compare before and after the FTX crash period is the average number of swap transactions, users, and volume. It is easy to notice that in almost all cases and for all DEXs except for the swap transactions on the Uniswap-v2 , we can see a significant increase in the average DEX swap activity after the FTX crash.

    Findings

    • Because extracting swap volume data for Uniswap and ZipSwap is difficult using Flipside tables (due to the lack of a dedicated Uniswap table on these chains, as well as a price table on all chains),We are not going to analyze volume’s data for these Optimism DEXs.
    • In the case of swap transactions, there has been a sudden increase since the hack on November 8, but after that, it started to decrease, but still, in the case of the average number of swaps before and after the hack, we can see the period after the hack has a larger amount.
    • In the case of swappers, we can see that the FTX hack caused an increase in the daily number of users, which continued until November 24, and that the average number of swappers increased after the crash compared to before the crash. 
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    Findings

    • The majority of near swaps occurred on Ref Finance.
    • The charts clearly show the impact of the FTX crash on NEAR DEXs and swap transactions. The total number of swaps and swappers increased suddenly on November 9, a day after the FTX crash, to form a peak number of swaps over the past 60 days with more than 5K transactions and 26 users, when it started to decrease to return to the amount before the hack.
    • Also, in the case of swap volume, we can see the same increase after the FTX crash, and the maximum swap volume over the past 60 days was on November 9.
    • The other chart that can be used to compare before and after the FTX crash period is the average number of swap transactions, users, and volume. It is easy to notice that in almost all cases and for all DEXs, we can see a significant increase in the average DEX swap activity after the FTX crash. But the noteworthy point is that although we had an increase in the days following the crash, the average number of swappers after the crash is smaller than before the crash.

    Findings

    • The charts clearly show the impact of the FTX crash on Solana DEXs and swap transactions. The total number of swaps and swappers increased suddenly on November 9, a day after the FTX crash, to form a peak number of swaps over the past 60 days and fluctuated until November 23, when it started to decrease until today.
    • We can see the same pattern on the swappers chart, and while Jupiter had the greatest share of this sudden increase, the maximum number of users over the past 60 days belongs to October 11, after the Mango hack.
    • Also, in the case of swap volume, we can see the same increase after the FTX crash, and the maximum swap volume over the past 60 days was on November 17.
    • The other chart that can be used to compare before and after the FTX crash period is the average number of swap transactions, users, and volume. It is easy to notice that in almost all cases and for all DEXs, we can see a significant increase in the average DEX swap activity after the FTX crash.

    Conclusion

    • DEXs saw a lot of activity in the early days of the crisis, but after a while, DEX activity has decreased to it’s pre-crash amounts.
    • Solana was hurt the most by the FTX crash. One reason may be that FTX had a lot of money invested in this ecosystem and its tokens, and during the crash, they were trying to avoid going bankrupt by selling their Solana tokens.
    • On the other hand, the alternative chains, such as Ethereum and Polygon, are gaining market share. This shows that people want to move their assets to a more secure and reliable blockchain so that those chains or platforms don't crash again.
    • There weren't many new users joining DEXs during the FTX collapse, and there was no discernible upward or downward trend in the number of new users joining DEXs prior to or after the FTX crash.
    • On most of the chains, the total number of swaps, swappers, and swap volume increased suddenly on November 8, the FTX crash day, to form a peak number of swaps over the past 60 days and then started to decrease until today.
    • Also, in almost all cases and for all DEXs, there was a significant increase in the average DEX swap activity after the FTX crash.

     

    DEXs Activitis

    New DEX Users

    DEX Activities on Ethereum

    DEX Activities on Optimism

    DEX Activities on NEAR

    DEX Activities on Solana

    Methodology

    • In this dashboard, we will analyze the activities on DEXs during the FTX crash, using the periods before (before November 8) and after the FTX crash (after November 8 until today) to compare DEX activities.

    • First, we will analyze the general DEX activities on different chains like Ethereum, Artbirum, Optimism, Polygon, Solana, and Near. \n Then, we will focus on each chain to compare DEX activities before and after the FTX crash on specific DEXs of each chain and find how they were affected.

      We will limit our data to the past 60 days to better compare pre-crash and post-crash behaviors.

    Introduction

    What is DEX?


    • Decentralized exchanges, also known as DEXs, are peer-to-peer marketplaces where cryptocurrency traders make transactions directly without handing over management of their funds to an intermediary or custodian. These transactions are facilitated through the use of self-executing agreements written in code called smart contracts.

    • DEXs were created to remove the requirement for any authority to oversee and authorize trades performed within a specific exchange. Decentralized exchanges allow for peer-to-peer (P2P) trading of cryptocurrencies. Peer-to-peer refers to a marketplace that links buyers and sellers of cryptocurrencies. They are usually non-custodial, which means users keep control of their wallet's private keys. A private key is a type of advanced encryption that enables users to access their cryptocurrencies. Users can immediately access their crypto balances after logging into the DEX with their private key. They will not be required to submit any personal information like names and addresses, which is great for individuals who cherish their privacy.

    • Innovations that solved liquidity-related problems such as automated market makers helped attract users to the decentralized finance (DeFi) space and largely contributed to its growth. DEX aggregators and wallet extensions fueled the growth of decentralized platforms by optimizing token prices, swap fees and slippage, all while offering a better rate for users.

      source

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    The Effect of the FTX Crash on the DEX Activities


    • The collapse of crypto derivatives exchange FTX is driving more attention to its on-chain competitors and prompting these decentralized exchanges (DEX) to double down as an alternative.

    • The revelation of unethical practices by FTX in its bankruptcy filing has set a panic among investors who are already losing trust in these centralized trading firms. Exchange outflows hit historic highs of 106,000 BTC per month in the wake of the FTX fiasco and the loss of trust in centralized exchanges (CEXs) has pushed investors toward self-custody and decentralized finance (DeFi) platforms.

    • Protocols can get hacked, duped, drained and worse, costing their users massive aggregate losses. In contrast with the “black boxes” of centralized exchanges, though, DEXs operate according to their open-source code.

      Source