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ETH is an open source blockchain platform that supports smart contract and is completely decentralized. the platforms original cryptocurrency ,ETHER is named after it. Ether has a market Capitalization. It holds the second position after Bitcoin in cryptocurrency. A Russian computer programmer , Vitalik Buterin, introduced the concept of entherteum in 2013. Conversion of one cryptocurrency to another after a report by Coindesk in early November 2022 highlighted potential leverage and solving concern. Involving trading from Alamedo research FTX abruptly shut down while FTX was in the middle of a crash crunch and a search for rescue finding, rival exchange BINANCE considered purchasing a stake in the company but ultimately decide against it .The CEO of FTX resigned and the company was declared bankrupt on November 11th 2022.
METHOD
*In this current dashboard I have used the fact token_prices _hourly table on Flipside crypto’s database so that we can find Average price of assessed tokens. *With the use of core.fact _swaps tables we calculate the volume of swap for each token. *The period time was selected over past 30 days. *We have also stacked the ETH transfer state by Ethereum.core. eth_transfer over time.
ATOM, MATIC, SOL & ALGO are the assessed tokens compared with ETH .Exception to this is MATIC which is a L2 Token while others are major L1 tokens.
- We have taken ATOM as default in this dashboard which can be changed by acomparable table offered taken after we log into Flipside.
ANALYSIS
OBSERVATIONS/FINDINGS
- From 6th November top maket tokens & ETHEREUM have declined in value noteably.
- From last 30 days the token represented in the graph shows the return percentage was in the range from 0.7% - 56% down in previous month.
- The event of FTX has acted as a catalyst of the drop in the price of these tokens. Eth price noted a 33.17% fall when the market got heated fro the collapse of FTX (it fall down from$ 16.40 to$1,109.57 on November 22nd)
Findings:
The line charts above show the growth of sold, bought, and net volumes of ETH and ATOM.
As can be seen, the volume difference between sold out and bought ETH is too large, resulting in a net swapped volume of approximately 87.5 million sold out ETH, whereas this gap for ATOM is too small.
The charts right present the swaps transaction count and cumulative state over time.
SWAPPING STATE
Findings:
The graphs on the right show the swap volume in terms of bought, sold, and net swapped volumes of ETH and selected tokens (ATOM by default). As can be seen, FTX's bankruptcy on November 7th had a significant impact on the price of ETH, so that the sold volume in November 8, 9, and 10 reached a new all-time high, and peaked at more than 20 million ETH on November 10th compared to only 1.5 million ETH bought. On the other hand, there is no discernible difference between sold-out and bought-out ATOM these days.
A SPECIAL THANKS AND CREDIT TO 0xHaM☰d
CONCLUSION
As of Findings above:
- Over the past 30 days, the price of approximately whole of tokes dropped, affected by FTX’s demise.
- Like other cryptocurrencies, ETH has been hit by the market crash triggered by the collapse of the FTX (FTT) exchange.
- Since November 6th Ethereum and Top other tokens have declined in value sparkly.
- The global macroeconomic backdrop will keep playing a big role in determining crypto market momentum and, ultimately, the Ethereum price.
- Selected token (ATOM by default) less affected than ETH from FTX’s fallout.On the above analysis, I have expressed several reasons behind ETH price drop during recent days and in my opinion, the main reason is because of FTX hacked activity and their high sell pressure of drained ETH tokens from this exchange which is almost getting close to its end and this can be good news for ETH so maybe it can recover its lost price in the near future if nothing else bad happens !
- We have seen that many cryptocurrencies have lost their value after FTX collapse and the token with the highest price drop was SOL because of heavy investment of FTX on this token.
- ETH token has lost 27% of its value (compared to 1st November) and its situation is better than AAVE, ATOM, FLOW but worse than BTC, UNI and MATIC.
- The ETH balance of FTX hackers and also their selling activity has quite correlation vs ETH token price. More sells = more price drop.
- This behavior of hackers has also Instilled fear in traders and we have seen a quite high ETH selling activity during November by traders especially during FTX collapse and also the same time when hackers were selling their drained ETHs and the reason behind this behavior of traders can be fear and panic.
- The situation of ETH on CEXs is better than DEXs and we have seen more outflows from CEXs than inflows during November and this shows lower risk of ETH selling pressure within centralized exchanges.
- Totally, nothing is certain and 100% in cryptocurrency (and other financial markets), but we can kinda predict that if in the near future, the selling activity of FTX hackers (and also their ETH balance) ends and another crisis such as FTX does not happen (like Genesis platform possible bankruptcy as mentioned above) and if the inflation rate decrease and also if the technical situation of ETH price chart is good, we can be hopeful that ETH price begins to recover in the near future.
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