Try Quests to earn SOLExchange Flows in the Bear
Introduction
Finance has been democratized by blockchain technology, but there are still two distinct models: centralized finance (CeFi) and decentralized finance (DFi) (DeFi). They both utilize distributed ledger technology well, making them both major participants in the bitcoin business. Both ideas have progressed to address their own unique problems and are subsequently bringing about significant changes in their respective fields. Companies and businesses are at the heart of CeFi. It functions similarly to the traditional banking system in that users can use their cryptocurrency holdings as collateral to secure a loan or earn interest. Therefore, similar to conventional banks, these private firms function as lenders, hold custody of the deposited assets, and assume the risk. To an extent, the centralized nature of the CeFi system can be attributed to the role that intermediates play in the system. Link
Method
To create the current dashboard, I used the ethereum.core.dim_labels table to locate Centralized Exchange addresses, then I filtered wallet addresses that had moved funds from these Cexs addresses to other addresses, and finally I monitored their actions to see what they did with their funds after withdrawing them.
In the conclusion, I compared the Ethereum network's results with those of the Solana and Algorand blockchains to stress their differences.
I attempted to analyze metrics like:
- The total number of daily transactions and the total number of unique users who performed those transactions.
- The daily volume of ether transfers expressed in US dollars.
- Activities that people engage in after making a withdrawal, such as tracking the purchase of NFTs, the provision of liquidity, the holding of NFTs, the transfer of NFTs to new wallets, and the swapping of NFTs.
So join me on this journey
Conclusion
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Transactions, Unique Withdrawers & Transferred Volume
Vis 1=>8
> Binance has the most transactions and users, as expected. > > Transmitted transactions and unique users have fluctuated little in the past six months. > > The Luna crash generates market turbulence on May 11 and 12. > > Next, I tracked the top 10 assets that changed hands each day over a six-month period.
- Daily Top 10 Assets transferred
Vis 9=>17
> In the previous six months, USDT, USDC, and ETH were the most common Cexs withdrawals. > > In periods of market volatility, investors lower the risk in their investment baskets and overall investment risk exposure.
- New Wallets
Vis 18=>22
> 4.9 million people who withdrew funds from Cexs used new wallet addresses to transfer 473 billion U.S. dollars from old addresses to new ones.
> Vis 18 will show the number of users and total value of assets transferred to new wallets in the past six months.
- NFT Buying
Vis 23
> After withdrawal, over 330k clients spent $4 million on Ethereum NFTs. > > As of this month's 23rd, the number of daily NFT transactions and unique buyers has consistently increased from 6 months ago. After that date, they plummeted to less than half, rose until July 10th, and have fallen since.
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Compare The Chains
Vis 24=>27
> Ethereum's withdrawal transactions are higher than Solana and Algorand's. > > In the past six months, Solana Cexs withdrawals have fallen. > > The cumulative statistic reveals that Algorand's transaction rate and unique withdrawers aren't rising, but Ethereum's are.
- Actions After Withdrawal
Vis 28=>31
> April and May witnessed the most withdrawals and transfers across all three chains.
Vis 32=>37
> Most Cexs asset transfers went to hodling, regardless of blockchain, followed by unknown recipients. > > Then, assets were traded or converted to NFTs. > > Instead of switching between chains, buy NFTs on Ethereum.
About:
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Author: HaM☰d
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Discord: 0xHaM☰d#8391
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Twitter: @arjmandi_hamed
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Email: h_arjmandi2012@yahoo.com
Let's understand whether the bear market and recent issues with CeFi products have changed centralized exchange users' behavior.
Explore trends in exchange withdrawal (specifically, moving money from CEX addresses onto the chain) patterns over the last 6 months. Have those withdrawals increased? Has the typical size of them changed? Most important: are people creating new wallets to take custody of their CeFi deposits? Also have a look at what people do after a withdrawal: are they holding their withdrawn tokens? Or are they fiat-on-ramping so they can swap, provide liquidity, buy NFTs, etc
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Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I’m Hamed, Ph.D. In Civil Engineering and interested in data science.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please have a look at my various contact information and let me know what you think.
Part I: Transactions, Unique addresses & Volume over the past 6 month
- Daily metrics of transferred Transactions & Unique user count, Amount of Transferred Volume, Cumulative growth and share of each parameters on Ethereum Chain
Most of transferred transactions and Unique users counts are belongs to Binance as expected.
Over the past 6 month have had a fluctuations on transferred transactions & Unique users count But NOT really significant.
On May 11 & 12th the volatile on market suddenly goes up, that was because of Luna crash on May 11th.
In the next part I tried to track the top 10 assets that transferred on daily over the six moth ego.
Part II: Top 10 Daily Transferred Assets
In this section daily transferred top 10 assets are evaluated.
> USDT, USDC & ETH were the top 3 assets that Withdrawers prefers to transferred from Cexs over the past 6 month. > > That was expected, because of in volatile market conditions, investors tends to decrease risk on their investing baskets and risk exposure on investing decreases.
Most important: are people creating new wallets to take custody of their CeFi deposits?
The short answer to this question is YES,
We can saw that from 4.9m addresses that transferred their assets from Cexs, used new wallets addresses to transfer again transfer to those
473B USD from early 611B transferred assets, transferred again to new addresses that was created after withdrawing from Cexs.
In the next Vis 18, can see the count of transferred transactions and unique users over the past 6 month that transferred their assets to new wallets.
Part V: Buying NFTs on Ethereum
- More than 4M $USD were Spent to buying NFTs on Ethereum after Withdrawal. that took placed by more than 330k Unique buyers.
> As of Vis 23, can observed that since 6 month ego there was an upward trend on buying NFTs transactions and unique buyers on daily over time till June 2th, after that dropped to less than half of before that date, and again raise up till July 10th, and after that went on a downward trend to date.
In all three blockchain, hodling was the major destination for transferred assets from Cexs, and after that users tend to transfer their assets to probably new addresse.
Swap and buying NFTs were the next destinations for transferred assets, respectively.
On Ethereum, buying NFTs proffered to swapping rather than two other chains.
Part VI: Compare Transfer transactions with other chains (Solana & Algorand)
- Withdrawal Transactions on Ethereum are significantly more than Solana and Algorand as Expected.
- Daily Withdrawal transactions from Cexs on Solana were decreasingly over the past 6 month.
- On Cumulative chart can observed that on Algorand there was no momentum on transactions and unique withdrawer, but in Ethereum momentum is so sharpen than others.
