Introduction

FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. We strive to develop a platform robust enough for professional trading firms and intuitive enough for first-time users [1].

Alameda Research is a leading principal trading firm, working as a quantitative cryptocurrency trading firm that provides liquidity in cryptocurrency and digital assets markets [2].

The Alameda Research have tried to buy the FTT tokens available on Binance but Binance CEO Changpeng Zhao (CZ) isn’t interested in selling his company’s FTX Tokens in an OTC deal with Alameda [3].

All of this events let users to untrust in exchanges and other platforms and a lot of crypto users have started to migrate to self-custody wallet, from that point “Not Your Keys”.

Methodology

In this dashboard we are gonna explore the repercussion of this event on the Axelar Satellite Bridge.

We will divide the analysis in two main approaches:

• Did bridge activity spike over the last 7 days?

  • Daily bridges since November 1st

  • Daily amount bridged since November 1st

  • Average amount bridged since November 1st

  • Daily bridges per chain destination

  • Daily volume bridged per chain destination

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• Net outflows from FTX onto Ethereum

  • Netflow volume of FTX onto Ethereum

  • Destination volume of FTX outflows onto Ethereum

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Bridge activity over the past days

In this first charts, we can see the global activity of Axelar Satellite over the past days. As it can be seen, the amount of bridges increased during those affected days reaching the highest values since the start of the month. Then, the numbers returned to the previous levels.

The same has occurred with the total volume bridged. From around 2M bridged daily, the total amount jumped over 8M during the affected days, which is around 4x more. Looking at the average volume bridged, we can see how it has a downtrend, that were partially broke during the affected days, when the average volume bridged jumped a little bit.

Bridge activity per destination chain

If we take a look at the numbers by chain destination, we can see how the most activity was concentrated to bridge to Ethereum chain and Osmosis chain having both more than 25% of the total bridges each. They amount of bridges seems to didn’t vary during the affected days. However, the bridges experimented some changes during those days when a new destination appeared - Ki chain, and another experimented a growth - Kujira.

In terms of volume, the major of them is represented by Ethereum. In this case, there is a huge difference with the rest of the chains. In fact, during the affected days, the distribution of volume bridged to Ethereum increased from less than 60% to more than 80%.

Regarding the average amount transferred per day, we can see how the most affected destination was Ethereum again. Its amount increased while the rest remained stable.

FTX movements ontp Ethereum

Finally, looking at the FTX movements on Ethereum, we can see how during the event days, the netflow onto Ethereum was so negative reaching the highest loss on November 6th with over 650M. Since the first of this month, a total of almost 2.5B have been left Ethereum from FTX.

If we take a look at its destination, we can see how the preferred one has been Binance, followed by Coinbase. In fact, looking at the cumulative outflow, we can see how more than 1B went to Binance and 300M to Coinbase.

Key insights

• Did bridge activity spike over the last 7 days?

  • The amount of bridges increased during those affected days reaching the highest values since the start of the month. Then, the numbers returned to the previous levels.
  • The same has occurred with the total volume bridged. From around 2M bridged daily, the total amount jumped over 8M during the affected days, which is around 4x more.

• In which ecosystem were the bridges?

  • The most activity was concentrated to bridge to Ethereum chain and Osmosis chain having both more than 25% of the total bridges each. Their amount of bridges seems to didn’t vary during the affected days. However, the bridges experimented some changes during those days when a new destination appeared - Ki chain, and another experimented a growth - Kujira.
  • The major of the volume is represented by Ethereum. In this case, there is a huge difference with the rest of the chains. In fact, during the affected days, the distribution of volume bridged to Ethereum increased from less than 60% to more than 80%.
  • The most affected destination was Ethereum again. Its amount increased while the rest remained stable.

• FTX outflow onto Ethereum

  • During the event days, the netflow onto Ethereum was so negative reaching the highest loss on November 6th with over 650M. Since the first of this month, a total of almost 2.5B have been left Ethereum from FTX.
  • The preferred one has been Binance, followed by Coinbase. In fact, looking at the cumulative outflow, we can see how more than 1B went to Binance and 300M to Coinbase.