On November 23, Chainalysis’ research head Eric Jardine became the first person to compare the market shares of the two businesses in a discussion on Twitter.
To predict how the ecosystem will be impacted by FTX’s bankruptcy, Chainalysis, a blockchain analysis business, likened it to the demise of Mt. Gox.
The analysis found that FTX represented a comparably lower share of the cryptocurrency industry than Mt. Gox did at the time and predicted a stronger-than-ever market recovery.
On November 23, Chainalysis’ research head Eric Jardine became the first person to compare the market shares of the two businesses in a discussion on Twitter. He found that FTX averaged 13% from 2019 to 2022, while Mt. Gox averaged 46% of all exchange inflows in the year prior to its 2014 collapse.
According to Jardine, centralized exchanges (CEXes) were the sole players in the market when Mt. Gox failed in 2014. Decentralized exchanges (DEXes), such as Uniswap and Curve, had gotten over half of all exchange inflows by late 2022, nevertheless.
“During a period of expansion for the category, Mt. Gox was becoming one exchange among many, taking a smaller piece of a larger pie. In contrast, FTX was outperforming rival exchanges while capturing a larger portion of a pie that was getting smaller, according to Jardine.
Despite other factors like Sam Bankman-prominent Fried’s public profile, Jardine believes the comparison “should give the industry optimism” because when it comes to market fundamentals, “there’s no reason to think the industry can’t bounce back from this, stronger than ever.”
