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Centralized Exchanges

Binance and Self-Storage Big Winners Post-FTX

Jerry Sun, Ally ZachNov 21, 2022 ⋅ 7 min read

Key Insights:

  • Binance was the largest beneficiary in global perp trading activity, capturing 9.6% more market share after the collapse of FTX.
  • Investors took ETH and BTC out of centralized exchanges amid ongoing liquidity concerns.
  • DeFi usage spiked as investors repositioned their portfolios in the wake of FTX’s collapse but declines in activity remain a trend to watch.
  • ETH asset flows from illicit addresses reached an all-time-high as bad actors from the FTX crash looked to cash out their funds.

This is a continuation of our FTX coverage. For a timeline of events, please refer to our piece here. We also covered FTX’s mismanaged balance sheet here and the recent hack of funds here.

The collapse of FTX presents an opportunity for competitors in the market. Between other centralized exchanges and DeFi protocols, there’s no lack of trading volume looking for a new home. FTX was the third largest exchange in terms of perpetuals trading, doing an average of $9.5 billion of volume per day. This equated to about 10.1% of the market share for FTX.

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Jerry Sun
jerrysun_

Jerry joined Messari as a Research Analyst after working in management consulting. He graduated with a B.S. in finance and a minor in computer science from Indiana University's Kelley School of Business.

Ally Zach
0xallyzach

Ally is a Research Analyst on the Enterprise team at Messari. Prior to joining the team, Ally worked as a Structural Engineer at Magnusson Klemencic Associates. Ally graduated from the University of Illinois in 2018 with a master’s degree in Civil and Structural Engineering.

Mentioned Assets
Outline
  • Key Insights:
  • Where Have the Volumes Gone?
  • The Exchanges are Being Left Behind
  • Market Turmoil and Illicit Actors
  • Looking Ahead
Authors
Jerry Sun
Jerry joined Messari as a Research Analyst after working in management consulting. He graduated with a B.S. in finance and a minor in computer science from Indiana University's Kelley School of Business.
Ally Zach
Ally is a Research Analyst on the Enterprise team at Messari. Prior to joining the team, Ally worked as a Structural Engineer at Magnusson Klemencic Associates. Ally graduated from the University of Illinois in 2018 with a master’s degree in Civil and Structural Engineering.
Mentioned Assets