Post-FTX Effect: Bybit, Kraken, Bitget On The Roll
By Laxmikant Khanvilkar
The collapse of FTX prompted several other platforms to take additional measures and up their game on the security field. As a result, they have managed to survive the onslaught created by FTXs’ debacle.
For better understanding, let’s analyse the data provided by the blockchain analytics firm – Nansen. According to the data, exchanges such as Bybit, Kraken, and Bitget have overcome the FTX shock and boosted their trading volumes during the first half of 2023.
Nansen analysis estimated that the FTX crash in November 2022 changed the Crypto exchange (CEX) landscape , with many exchanges experiencing record outflows and diminished interest from investors towards the end of 2022 and the start of 2023.
Some of the biggest losers seem to be Bitfinex, Kucoin, Gate.io, and OKX . The average monthly spot trading volume of Bitfinex six months before the fallout was over $12 billion, compared to $5 billion half a year later.
On the other hand, Kraken boosted its spot trading volume by approximately 14%, whereas Bybit recorded a 7% increase.
Although Binance was initially rumored to have a hand in the FTX implosion, the world’s largest cryptocurrency platform remained relatively unfazed. Its average monthly spot trading volume shifted from nearly $445 billion to approximately $444 billion.
Derivatives trading volume in the sector has gone through a minor decline, with a significant spike observed in November last year.
The only winner here seems to be Bitget, whose average numbers in that field six months before the catastrophe were $194 billion, compared to $204 billion in the aftermath . Bitfinex and Kucoin were once again on the losing side, marking reduced levels of respectively 40% and 41%.
While sending shock waves through the entire crypto industry, the demise of FTX caused some exchanges to advance their investor protection programs.
Binance increased its Secure Asset Fund for Users (SAFU) to $1 billion, asserting the assets will be only used in case of an adverse event. Bitget raised its protection fund from $200 million to $300 million. Coinbase, Huobi, and OKX were among the others to take similar measures.
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