- Chainalysis: The fall of Terra, Celsius, and 3AC impacted markets worse than FTX.
- The firm determined the realized profits and losses for each individual cryptocurrency wallet.
- Crypto holders continue to have the belief that there is more upside to come.
New research by Chainalysis has revealed that the following three significant crypto disasters, which preceded FTX’s unexpected bankruptcy, were more detrimental to cryptocurrency investors: The de-pegging of Terra in May, which was then followed in June by failures at Celsius and the hedge fund company Three Arrows Capital (3AC).Read CRYPTONEWSLAND on google news
According to the analytics firm, the charts don’t take everything into account. They determined the realized profits and losses for each individual cryptocurrency wallet during the course of the year.
Investors lost a total of $20.5 billion in realized value as a result of Terra’s failure. On the other hand, losses of $33 billion were incurred as a result of the collapse of Celsius and Three Arrows Capital. The fall of FTX resulted in ‘just’ $9 billion in damages being realized.
We can’t 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.Chainalysis
Notably, while all of this was taking place, the broader economy started its descent down to earth. This was after a surge in stock values that was caused by the epidemic.
This also resulted in a general decrease in people’s tolerance for chaotic and illogical gambling that took place with online money. Many investors’ perceptions of cryptocurrency shifted from that of a harmless diversion to that of a potentially risky investment.
This was when the economy started to stabilize and users’ collective willingness to take risks decreased. HODLers, on the other hand, continue to have the belief that there is more upside to come.
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