Glassnode analysts pointed out the major trends observed in the context of BTC and outlined key metrics to assess the potential risks associated with centralized cryptocurrency exchanges (CEXs).
In their weekly research report, Glassnode analysts noted that approximately 54% of the transferred on-chain volume for Bitcoin (67,300 BTC out of 122,000 BTC) is attributable to transactions on CEXs. Meanwhile, there has been a decline in the balance of centralized crypto exchanges to 2.256 million BTC, which is a five-year low.
The top three leaders in terms of BTC volume in their accounts haven’t changed since 2019. The current state of their accounts is as follows:
- Binance — 691,200 BTC;
- Coinbase — 439,800 BTC;
- Bitfinex — 320,700 BTC.
In their report, Glassnode analysts shared three indicators that help determine the formation of problems on CEXs:
- Reshuffling Ratio — the proportion of an exchange’s balance that is processed within the platform over a certain period of time;
- Reliance Ratio — the volume of transactions that take place between the addresses of different crypto exchanges;
- Whale Withdrawal Ratio — the rate of BTC withdrawals from CEXs by whales.
The presented metrics were formulated by analyzing the FTX collapse. Analysts note that among the largest crypto exchanges, Binance and Coinbase seem to be the most stable. However, some concerns are caused by Huobi’s current situation. The volume of assets on the exchange has been gradually declining since the beginning of 2023, and since June, there has been an active outflow of funds to the balances of other crypto exchanges and the withdrawal of assets by whales.
In early 2023, Huobi was hit by the FUD effect amid rumors of structural problems in the company. As a result, users withdrew over 6,500 BTC in a month. In the summer, negative rumors around Huobi began to spread again, leading to a $500 million drop in the crypto exchange’s TVL in July. As of August 30, users had withdrawn just over 1,945 BTC from the platform over the past 30 days, according to CoinGlass. Meanwhile, DefiLlama data shows that TVL increased by $335 million compared to the volume recorded in July.