The most notable outcome of the FTX fallout has been the mass withdrawals of BTC and ETH from crypto exchanges into self-custody wallets as the debate on the dependability of centralization fires up.
According to a chart depicting Bitcoin’s Exchange Net-Position Change, exchanges have seen one of the largest net declines in aggregate BTC balance in history, falling by 72.9k BTC in the past seven days. According to the firm, this compares with only three periods in the past: April 2020, November 2020 and June-July 2022.
The firm also mapped out a similar picture for Ethereum. In the past week, 1.101 million Eth was withdrawn from exchanges into self-custody wallets, “This makes for the largest 30-day balance decline since September 2020 during the peak of “DeFi Summer”, where the demand of Ethereum was sky high for use as collateral in smart contracts,” the firm added.