This week brought massive and historic events in the cryptocurrency ecosystem as markets have been in a steady decline.

The second week of this month saw the largest cryptocurrency fall in price for the rest of the altcoins to follow, and to make matters worse, cryptocurrency exchange FTX fell, adding to the negative impact.

With a cloud of uncertainty surrounding the future of FTX and the companies that may expose it, investors have chosen not to get caught in the crossfire by withdrawing their funds from exchanges in all directions.

According to Nansen data, more than $1 billion in Ethereum has been withdrawn and drained from exchanges in the past 24 hours.

Withdrawals include other top altcoins, the top three stablecoins USDT, USDC and BUSD, as well as WETH, which comes in as the top 5 assets moved by exchanges.

Investors in the Web 3.0 ecosystem are nervous about FTX’s downfall and the possibility of the trading platform being pulled, especially after the recent announcement about Binance pulling out of the acquisition.

In an attempt to prevent similar situations recorded on lending platforms such as Voyager Digital and Celsius Network, which have so far closed off liquidators and investors’ funds, many traders took the initiative to withdraw their funds to a wallet they controlled.

If the cryptocurrency industry is leaning towards a second crypto winter, investors will want to better control their losses this time around.

The reason With the industry’s market capitalization now below $900 billion, investors are choosing to hold their money in stablecoins, allowing for easier liquidations if their preferred platform weakens.

At the time of writing, Bitcoin is down 8.4% to $16,500, while Ethereum is trading at $1,182 after falling 6% in the past 24 hours.

Also read:

Why did Binance hold off on acquiring FTX?

Cryptocurrency market cap drops below $900 billion for first time since January 2021