These exchanges that benefit from the fall of FTX

The collapse of FTX had a significant impact on the crypto industry. Reference is made in particular to the fall of many exchanges and the disruption of transaction volumes. The event even ended up shaking the confidence of crypto users. The report from Nansen, a blockchain analytics platform, however, shows that some platforms have managed to thrive.

Emergence of certain exchanges despite the fall of FTX

Data collected six months after FTX’s collapse shows that Kraken and Bybit defied the overall downward trend in spot trading volumes. Kraken experienced an increase of 14.4% of its average monthly volume, reaching $18.9 billion. Bybit recorded a notable increase of 7.65%, reaching $18.2 billion. Admittedly, Binance remains the largest exchange. But its volume fell slightly by 0.2%, stabilizing at 444 billion dollars.

Regarding derivative transactionsBitget is doing very well with growth of 4.85% on its average monthly volumes, reaching $204 billion over the same period. However, Binance remains the undisputed leader in this field. With the exchange recording $1.3 trillion in derivative transactions, despite a 12.9% drop from pre-FTX collapse levels.

How to build customer confidence

The collapse of FTX has reduced user confidence in centralized exchanges or CEX. To rebuild customer trust, centralized exchanges have started implementing different measures. This includes proof of reserves or PoR, which demonstrates actual possession of the claimed funds. Some crypto analysts argue, however, that it does not reveal enough information to assess a company’s financial health.

THE protection fund also help build user confidence, using dedicated repositories to cover losses resulting from hacks or unforeseen events. Of the crypto exchanges rated by Nansen, only Binance and Bitget disclose their protection fund wallet addresses.

Even today, the misdeeds of the exponential fall of FTX are felt. The proof, the crypto market in general has hard to get up.