According to Chainalysis, weekly losses peaked at $20.5 billion when Terra Luna (LUNC) exploded and reached $33 billion when 3AC and Celsius collapsed.
Blockchain analytics firm Chainalysis tried to put the FTX crash into perspective by comparing the weekly peak after the stock market crash to previous major crypto crashes in 2022.

The December 14 report found that the May divergence of the Terra USD (UST) peaked at $20.5 billion in weekly losses, followed by the June collapse of Three Arrows Capital and Celsius with weekly losses peaking at $33 billion.

By comparison, weekly losses during the FTX saga peaked at $9 billion the week of November 7 and have been shrinking weekly ever since.

Chainalysis said the data shows that when the FTX debacle hit in November, investors were already exposed to the biggest crypto events of the year.

“The data […] show that as of now, the most damaging events in the [crypto] space lagged behind investors when the FTX debacle occurred.”
The analytics firm calculated the total losses incurred by looking at personal portfolios, measuring the value of assets as they were acquired, and subtracting the value of those assets when they were sent elsewhere.

However, data can still overestimate incurred losses, as any move from one portfolio to another counts as a sell event. Chainalysis also noted that the chart does not take into account other statistics, such as the freezing of user funds stored on FTX exchanges.

“We cannot assume that any cryptocurrency sent from a particular wallet will necessarily be liquidated, so think of these numbers as the upper bound on earnings for a particular wallet,” he explained.

Related: Was FTX’s Fall Really “Lehman’s Crypto Moment?”

While Chainalysis data covers realized losses, on-chain analytics platform CryptoQuant recently shared data on how Bitcoin’s unrealized losses are clarified.

down cursors

After the collapse of FTX.

It found that unrealized losses for BTC peaked at -31.7% after the FTX crash, compared to the 3AC/Celsius and Terra Luna crashes, which only peaked at -19.4%.

Unrealized net Bitcoin gains/losses. Source CryptoQuant.
Analytics data firm Glassnode also highlighted the high level of unrealized losses following the FTX crash in a tweet on November 17, comparing it to the -36% peak seen in the 2018 bear market.

Gains or losses related to the investment are considered unrealized until the investment is sold. And the sales process “notices” these losses or gains. Unrealized losses are also known as paper losses.

Source: CoinTelegraph