Weekly-realized losses peaked at $20.5 billion when Terra Luna (LUNC) imploded and reached $33 billion when 3AC and Celsius collapsed, according to Chainalysis. 4958 Total views 55 Total shares Listen to article 0:00 News Own this piece of crypto history
Collect this article as NFT Blockchain analytics firm Chainalysis has attempted to put the FTX collapse into perspective comparing peak weekly-realized losses in the wake of the exchanges collapse compared to previous major crypto collapses in 2022.
The Dec. 14 reportfound the depegging of Terra USD (UST) in May saw weekly-realized losses peak at $20.5 billion, while thesubsequent collapse of Three Arrows Capital and Celsius in June saw weekly-realized losses peak at $33 billion.
In comparison, weekly realized losses during the FTX saga peaked at $9 billion in the week starting Nov. 7, and have been reducing weekly since.
1/ Our data suggests that FTXs demise hasnt been crypto investors biggest issue this year. Both the depegging of Terras UST token & the collapse weeks later of Celsius & Three Arrows Capital (3AC) drove much bigger realized losses. https://t.co/tWpX9qjY6o pic.twitter.com/TI2eJSVXaW Chainalysis (@chainalysis) December 14, 2022
Chainalysis said the data suggests that by the time the FTX debacle took place in November, investors have already been hit with the heaviest crypto events this year. The data […] suggests that as of now, the heaviest hitting [crypto] events were already behind investors by the time the FTX debacle took place.
The analytics firm calculated total realized losses by looking at personal wallets and measuring the value of assets as they were acquired and subtracting the value of these assets at the time they were sent elsewhere.
However, the data may still have overestimated realized losses, as it counted any movement from one wallet to another as a sale event. Chainalysis aalso noted that the chart doesnt take other statistics into account, such as user funds stored on FTXs exchange which are frozen.
We cant assume that any cryptocurrency sent from a given wallet is necessarily going to be liquidated, so think of these numbers as an upper bound for realized gains of a given wallet, it explained.
Related: Was the fall of FTX really cryptos Lehman moment?
While Chainalysis data covers realized losses, on-chain analytics platform CryptoQuant recently shared data on how net unrealized losses for Bitcoin (BTC) was impacted following the FTX collapse.
It foundthat unrealized losses for BTC maxed at -31.7% following the FTX collapse compared to the collapse of 3AC/Celsius and Terra Luna, which only peaked at -19.4%.Net unrealized profit/loss for Bitcoin. Source CryptoQuant.
Analytics data firm Glassnode also highlighted the high level of unrealized losses following the FTX collapse in a Nov. 17 tweet, comparing it to the peak of -36% seen during the 2018 bear market.
#Bitcoin Long-Term Holders are currently experiencing acute financial stress, holding an average of -33% in unrealized losses.
This is comparable to the lows of the 2018 bear market, which saw a peak unrealized loss of -36% on average.
Chart: https://t.co/qIGAxtSyGZ pic.twitter.com/BBtbOtApy1 glassnode (@glassnode) November 17, 2022
The gains or losses associated with an investment are considered unrealized up until the point that the investment is sold. The act of selling “realizes” these losses or gains. Unrealizes losses are also known as paper losses. #Bitcoin #Business #Bankruptcy #Data #LUNC #FTX #Celsius Related News What is impermanent loss and how to avoid it? Will FTXs ill wind reach the Global South? Maybe not Recent FTX hacks prove it was right to secure its assets: Bahamian regulator FTX under active civil and criminal investigation: Bahamas AG Legal professionals astonished as SBF admits failures, apologizes 12 times in interview
