Chainalysis: FTX Crash Didn't Break Fundamentals of Crypto Market Stability

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Chainalysis announced that a large influx from centralized to decentralized services was created by users and bots that used the crisis to make a profit.

Chainalysis analysts believe that the position of the cryptocurrency market is still reliable, despite the fiasco of the FTX exchange:

"The fundamentals of the market remain stable, the FTX situation arose due to financial fraud and not the problems of the blockchain or cryptocurrency industry."

Experts warn that many more companies could face insolvency problems after the fall of FTX.According to the data, investors withdrew about $270 billion worth of cryptocurrency from the market in the four days after the collapse of FTX.

This caused the total market capitalization of the market to fall to a low of $830 billion on November 10.Curiously, this level of capitalization was observed in January 2018.

"Users are now cashing out crypto at about the same rate as before the FTX crisis," they claimAnalytics.

Chainalysis draws attention to the fact that the net inflow of assets to centralized exchanges (CeFi) has decreased. According to analysts, users are still withdrawingassets and are looking for solutions for self-storage of assets, although not as intensively.Experts note that only part of the capital was actively moving to decentralized finance (DeFi) platforms and cold wallets.

"Flows from CeFi to DeFi have increased, but are not driving the growth of transaction volume on decentralized exchanges (DEXs).About 90% of the inflow of funds to DEXs came from other smart contracts and MEV bots," the report said.

MEV bots scan transactions in the Ethereum mempool and process the more profitable ones first.

Analytics company Glassnode reported that on November 13, bitcoin withdrawals from cryptocurrency exchanges reached an almost all-time high and amounted to 106,000 BTC for the month.