- Chainalysis compared the realized losses caused by the fall of Terra, Celsius, 3AC, and FTX.
- The data reveals that the de-pegging of Terra’s UST, the collapse of Celsius, and 3AC caused significant losses.
- Realized losses of investors stand at $20.5 billion for UST and $9 billion in the case of FTX.
Chainalysis posted a detailed analysis of the realized losses triggered by the falls of Terra, Celsius, and 3AC, as well as the recent one, the FTX. The study concluded that the impact of realized losses was much more significant after the de-pegging of Terra’s UST and the subsequent collapse of Celsius and 3AC than the fall of FTX.
The analysis reveals that FTX’s catastrophic fall was not the biggest issue faced by cryptocurrency investors this year. According to Chainalysis, investors faced a realized loss of $20.5 billion in the case of UST and $33 billion in the case of Celsius and 3AC.
Comparing the numbers of UST, Celsius, and 3AC, FTX stands way down at $9 billion in terms of realized losses. Chainalysis also stated that:
These charts don’t take everything into account: For instance, people who used FTX lost any funds they kept on the exchange, and the likelihood of recovering them is unknown.
The analysis reveals that from a market-wide point of view as per the above data, the most hard-hitting crypto events were already behind the investors. The fall of FTX, according to Chainalysis, didn’t have much of an impact compared to what happened in May.
The Terra ecosystem collapsed in May. The de-pegging of UST was followed by the fall of LUNA, and the entire empire collapsed to zero in a span of a few days. Investors also went through a similar situation, where many lost their life savings by storing their funds on FTX. Sam Bankman-Fried’s exchange filed for bankruptcy, and the Bahamian police recently arrested him.