Billions of dollars worth of Bitcoin, Ether, and stablecoins sitting on exchanges have headed for the exits.
Net exchange outflows have soared in the wake of FTX’s bankruptcy, inciting crypto holders everywhere to look after their own digital assets.
Data from on-chain analysis firm CryptoQuant shows that over $8 billion in crypto has flowed off of centralized exchanges since November 6th – when worries about FTX’s solvency began to propagate.
Since Binance CEO Changpeng Zhao’s worrying statements about FTX last week, $3.7 billion worth of Bitcoin has been withdrawn from centralized exchanges. About $2.5 billion in Ether have also left exchanges, alongside about $2 billion worth of stablecoins.
Centralized exchange reserves have now touched their lowest level since November 2018, now at just 2.089 million Bitcoin, and 19.999 million Ether.
Last Wednesday, CryptoQuant noted that over 80,000 BTC had left exchanges within a 24-hour period. The firm framed the data as “investors losing confidence in central exchanges.”
This was one day after crypto exchange FTX froze user withdrawals, and requested Binance’s help in addressing a so-called “liquidity crunch.”
FTX faced overwhelming withdrawal demand leading up to the freeze, due to rumors that the exchange wasn’t fully backing its users’ assets. On Friday, FTX filed for bankruptcy.
Some are now worried that CryptoCom could be facing liquidity trouble following strange on-chain behavior between itself and Gate – a rival exchange.
CryptoQuant CEO Ki Young Ju analyzed CryptoCom’s wallet movements on Monday, finding that its stablecoin reserve has fallen by 90% over the past 7 months. Meanwhile, the number of Ether withdrawals at the exchange has reached an all-time high.