Crypto markets rocked as stablecoin reserves deplete, Curve 3pool concentrated by USDT, 60k BTC leaves Binance, Alameda shorts USDT

Following on from one of many craziest days in crypto historical past on Nov. 9, the 24/7 crypto markets maintain traders busy. Binance launched its proof-of-reserves, FTX’s stablecoin steadiness nears zero, the Curve 3pool grew to become concentrated with USDT, and 60,000 BTC left Binance. Rumors are brewing of an Alameda Analysis quick place on Tether USDT because it probably appears for a last-ditch lifeline.

Binance proof-of-assets

Binance launched the proof-of-assets info that CZ had promised following the approaching collapse of FTX. In a extra meant to buoy the markets and inject belief into the trade after it was revealed that FTX had a gap in its steadiness sheet of $8 billion and no approach to course of shopper withdrawals, Binance revealed a brand new web page of its web site entitled “Proof of Assets.”

binance proof of assets
Binance Proof of Belongings

Binance outlined all of its asset holdings, and the trade included all of the on-chain addresses for every token together with a hyperlink to indicate the correlation with bridged belongings on different chains. The flexibility to open the blockchain explorer for every community and consider the info on-chain showcases the ability and skill of exchanges to be absolutely clear.

The extent of transparency proven by Binance is second to none and provides traders confidence that there isn’t any belief required. Following claims from trade leaders at Celsius, Voyager, and now FTX that their belongings have been absolutely backed up till the purpose the place the businesses introduced insolvency, the trustless method to transparency by Binance is to be applauded.

Some notable holdings are listed beneath:

  • 125,351 BTC
  • 1,904,674 ETH
  • 6,950,000 USDT
  • 50,805,657 DOT
  • 469,665,508 XRP
  • 745,000 LTC
  • 5,325,500,000 BUSD
  • 987,571,153 ADA
  • 878,999,999 USDC
  • 100,000,000 DAI

The whole worth of the above belongings is round $18.3 billion. Nonetheless, there are 385 tokens throughout your entire trade, so a full breakdown of all belongings could be required to provide an correct determine on the whole holdings.

Stablecoin reserves deplete

One token that has seen elevated inflows to Binance over the previous few days is Binance USD (BUSD), which is the one stablecoin to see a rise in deposits. The combination provide of all stablecoins on Binance nears $26 billion. The chart beneath reveals the online influx of BUSD onto Binance in distinction with different stablecoins.

busd binance
Supply: Glassnode

The bancrupt FTX has a really totally different story of its stablecoin balances as BUSD, USDC, USDT, and DAI are all close to zero as tokens have been withdrawn from the platform. Withdrawals are at the moment closed on the trade, and new person accounts can’t be created.

ftx stablecoins
Supply: Glassnode

Bitcoin is down 77% from its ATH

The necessity for elevated transparency by Binance throughout this era of excessive volatility has additionally been mirrored within the worth of Bitcoin. The main cryptocurrency by market cap is down 77% from its all-time excessive in its fourth most vital drawdown of all time because it falls beneath ranges reached throughout the Terra Luna collapse of Might this 12 months.

btc drawdown
Supply: Glassnode

Ethereum is now 77.3% down from its all-time excessive, which marks its fourth most vital drawdown ever.

eth drawdown
Supply: Glassnode

The ensuing downward strain of the worth of Bitcoin places it on the right track for the primary time in its historical past to be down in all 4 quarters of the 12 months.

btc QoQ
Supply: Coinglass

Ethereum had a stable third quarter as traders rallied into The Merge. Nonetheless, This fall is now seeking to be the third quarter this 12 months that Ethereum has closed down.

eth QoQ
Supply: Coinglass

DeFi stablecoin imbalances

Whereas the fallout from FTX’s collapse has rocked main tokens, the DeFi trade is now exhibiting indicators of stress. For instance, the Curve 3pool has develop into 84% targeting USDT as DAI and USDC balances fell beneath 8% every. A major imbalance might result in liquidity points as customers try and withdraw funds in numerous denominations than these used to deposit.

Twitter person astromagic recognized a commerce for $250k made by Alameda to swap USDT to USDC. The commerce seems to be part of a bigger technique to quick USDT to the tune of a number of hundred thousand {Dollars}. Whereas the determine could seem inconsequential given the scale of the crypto trade, it begs the query of why Alameda is making such a commerce at the moment.

The stablecoins have been used as collateral to borrow extra USDT after which promote these borrowed funds again into USDC, making an on-chain web promote of round $550k USDT.

Withdrawals improve throughout exchanges.

The concern, uncertainty, and doubt inside the crypto trade is rising as customers look to seek out safer grounds and keep away from any potential contagion. For instance, following the collapse of Terra Luna earlier within the 12 months, Voyager, BlockFi, and Celsius all bumped into instant liquidity points. As well as, FTX, Alameda Analysis, and FTX Ventures have extremely shut ties, and their investments considerably contribute to the crypto trade. In consequence, contagion inside different tasks is very attainable.

On Nov. 9, 60,000 BTC left exchanges, with the bulk coming from Binance as customers withdrew cash. The chart beneath reveals the quantity of BTC that went to Binance over the previous seven days. Nonetheless, the info from Glassnode signifies that Binance nonetheless has over 600,000 BTC in its custody which is considerably greater than introduced in its proof of belongings report.

btc binance
Supply: Glassnode

As of press time, the worth of Bitcoin has recovered to $17,526 from a low of $15,600 in a single day. Ethereum is again to $1,290 from a low of $1,069, whereas FTX’s FTT token is up 214% to $3.40 from a brand new all-time low of $1.08.

Bitcoin dominance has fallen to 40% from an area excessive of 42% on the finish of October. Nonetheless, curiously Bitcoin’s dominance has fallen all through the present turmoil available in the market, whereas throughout the Terra Luna collapse, it recorded an 11-month excessive of 48.5%.

btc dominance
Supply: TradingView

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