The collapse of FTX led to a similar exodus from centralized exchanges, as users worried they may lose access to funds during crises.
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The collapse of Silicon Valley Bank (SVB) saw investors loading their bags with USD Coin (USDC), along with an exodus of funds from centralized exchanges (CEXs) to decentralized exchanges (DEXs).
Outflows from centralized exchanges often spike when the markets are in turmoil, explained blockchain analysis firm Chainalysis in a March 16 blog post, as users are likely worried about losing access to their funds when exchanges go down.
Funds sent from CEXs to DEXs following SVB’s collapse. Source: Chainalysis.
Data from Chainalysis shows that hourly outflows from CEXs to DEXs spiked
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