An Analysis Of The New Celsius Wallets 

The purpose of this article is to create a dashboard that tracks the activity of newly identified Celsius wallets. Analyze incoming vs. outgoing transactions over time. What is the average amount transferred? In what proportions are wallets composed by token? Tweet your dashboard and tag larry- @lawmaster.

Overview About Celsius Network

Through a compounding yield service and low-cost instant loans available via the internet and mobile apps, Celsius helps over a million customers worldwide to find their path to financial independence. The Celsius platform provides members access to curated financial services that traditional financial institutions do not offer, based on the belief that financial services should serve the customers and community. In addition to using Celsius Network to buy cryptocurrencies, users can borrow or invest their crypto-assets for interest. In the latter instance, the company offers a rate of interest up to 18.63% in dollars, which is comparable to the rate Terra offered with the Anchor Protocol at the time.

What is a Celsius Network? How Does it Works?

Celsius Network is a crypto lending app for Android and iOS. In Celsius, we wanted to provide fair and impartial information to the public so they would be able to access the transparent services they were accustomed to, but have abandoned with banks, i.e., fair interest rates, low loan rates, and no fees. Fast and simple transactions.

If you keep cryptocurrency funds in Celsius, you earn interest on them every week, just like a savings account. Here’s how it works: 

  • Put your cryptocurrency in Celsius.
  • After that, you can borrow it from institutional and retail borrowers.
  • Whenever Celsius receives revenue from loans and other activities, you will receive a payment each Monday. Celsius returns 80% of its revenue to its users.

Advantages Of Celcius Network

The use of cryptocurrencies as collateral allows you to receive cash (or stablecoin) loans at varying rates. With Celsius loans, you don’t have to worry about a credit check and are usually approved in minutes. Despite not being a traditional wallet, Celsius Network offers the ability to send and receive supported cryptocurrencies through CelPay. It doesn’t charge any transaction fees and enables you to send crypto via a link, message, or directly in-app.

What cryptocurrencies does the platform support?

With Celsius’s earning network, users can stake their cryptocurrencies and earn interest by borrowing them. In addition to BTC, LTC, ETH, and stablecoins like USDT, GUSD, and DAI, the platform accepts more than 35 tokens. Each staked crypto coin has an APR that reflects the current market demand. By 2020, some of these tokens will earn 15% a year, far higher than banks’ yields – often less than 1%. CEL, the platform’s native token, offers a 30% higher payout if users choose to receive their interest earnings in it.

Here we can see the todays top list of cryptocurrencies which are supported by Celsius and can see more from https://celsius.network/earn .

In what context and how did the issue arise?

The whole thing got started when stETH, or staked ETH, which is pegged 1:1 to Ethereum, got hit hard when its peg was lost. Lido Finance’s stETH product represents Ethereum 2.0 Beacon Chain and can be leveraged as collateral to borrow more cryptocurrencies on DeFi platforms. 

As a result, the positions that borrowed ETH through stETH were liquidated when stETH lost its peg from ETH. Panic selling was triggered especially of Ethereum.  As stETH, the platform’s cryptocurrency token, lost its peg, customers began reclaiming their funds, which led to a liquidity crisis. Lido’s primary client is Celsius, and Celsius is a key holder of StETH as well. Due to low value of stETH compared to ETH, the crisis occurred!

By this reason recently, Celsius made the decision to halt trading activity due to ‘extreme market conditions’, including a pair of events that had a severe impact: the depegging of stakehound eth STETH and the Luna crash. Potential Celsius owned addresses have been circulating on twitter and we want to know the behaviors surrounding these addresses.Buy, swap, earn, borrow and send crypto – all in one app, with zero fees. But due to extreme market conditions, today the team of Celcius network are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. Here From the below tweet we can see .

Here in this dashboard we are going to aim to track the activity of newly identified Celsius wallets. Analyze incoming vs. outgoing transactions over time. What is the average amount transferred? In what proportions are wallets composed by token?

Find out what proportion of wallets is dominated by tokens

Under this section we can see the distribution of tokens which are held by recent celsius wallets . From the below graph we can see in terms of total balance, Compound Wrapped BTC Tokens contributed 36.6% and Top 2 Tokens ( Compound Wrapped BTC and Compound Ether) contributed 54.14%. Furthermore, we are able to see the top 25 tokens (based on their USD value) that have been held by Celsius wallets over time. 

From the graph below we can see that more than 35% of total balance was contributed by Compound Wrapped BTC . The Compound Ether occupied the second place of the top 25 tokens held by Celsius wallets. Therefore, a fair number of celsius wallets use Compound Wrapped BTC tokens.

Here from the below graph we can see the top 10 celsius wallets distributed by their USD balance . The top1 wallet name here is ‘0x8aceab8167c80cb8b3de7fa6228b889b1130ee8’ which contributes for 45.35% of the total Balance (USD) and the top 2 wallets make up for 67.09% of the total Balance (USD). Out of the top 10 wallets, 65% of the total balance is only held by two wallets. 

The flow of tokens (in USD) to and from the network

In this section we can see the flow of tokens in USD which are done to and from the Celsius network . Over the period of May 16, 2022 to June 14, 2022, $8.45B inflows (usd) occurred. The maximum Inflow(usd) of $949.14M was observed in May 20, 2022, and the minimum Inflow(usd) of $421.06K was observed in May 22, 2022. The total inflow(usd) on May 20, 2022 is higher than normal. Between May 16, 2022 and June 14, 2022, the total outflow (USD) was $263.38M. A maximum Outflow(usd) of $768.11K was observed in June 4, 2022 and a minimum Outflow(usd) of $28.75M was observed in May 16, 2022. May 18, 2022 had a higher total outflow (USD) than usual.

We initially saw a good amount of token inflows in the Celsius network over time, but the outflow of tokens and inflow of tokens significantly decreased later. The inflow and outflow of tokens has been increased once again from June 6th 2022. ‘Extreme market conditions’ could be the reason. 

If we look at more detail the daily top 10 outflowing tokens by their USD values can be seen from the below graph. USD-pegged Tether Tokens contributed for 40.8% of total outflow volume, while Top 2 (Tether USD and Chainlink Token )tokens contributed for 59.38%. Volume of total outflow in May 18, 2022 is lower than normal, and volume in June 9, 2022 is higher than normal. The following charts show the amount of tether USD tokens that were outflowing from the Celsius network over a period of time when compared to daily top 10 token outflows. Nevertheless, we can see that on Jun 14 2022, 100% of the tokens were outflowed by Tether USD alone. Because of the extreme market conditions, On Jun 12 2022, the Celsius network team announced that all withdrawals, swaps, and transfers between accounts would be halted.

As you can see by the graph below, the outflow of tokens was higher during the week of May 15-21 2022. During the first week of June 2022, we can see a greater outflow of token volume on the Celsius network. 

If we look at more detail the daily top 10 Inflowing tokens by their USD values can be seen from the below graph. Wrapped BTC Tokens contributed for 44.86% of total inflow volume, while Top 2 (Wrapped BTC and Tether USD ) tokens contributed for 63.87%. May 21, 2022 and May 28, 2022 showed a lower total inflow volume (usd) than normal, while May 20, 2022 showed a higher total inflow volume (usd) than normal. The following charts show the amount of wrapped BTC tokens that were Inflowing into the Celsius network over a period of time when compared to daily top 10 token outflows. Nevertheless, we can see that on Jun 13th and 14th 2022, we can see a more inflow was happened by Wrapped BTC .

As you can see by the graph below, the inflow of tokens was higher during the week of May 15-21 2022. During the 12-18th week of June 2022, we can see a greater inflow of token volume on the Celsius network.

The flow of transactions in and out of the network

In this section we can see the flow of transcactions in and out of the Celsius network over a period of time . The chart below shows the number of transactions going to Celsius network and outgoing during the past 30 days. The chart shows that even on June 9th, the number of incoming transfers has exceeded the number of outgoing transfers. In general, the number of incoming transactions has increased since June 10th.

Maximum Inflow transactions of 1.62K were observed in June 11, 2022. Inflow transactions are decreasing. Total Inflow transactions in June 5, 2022 have been lower than normal, but June 11, 2022 have been higher than normal. June 11, 2022 had the highest Outflow transactions of 269 and June 14, 2022 had the lowest Outflow transactions of 3.  Total outflow of transactions on June 13, 2022 is lower than normal. Hence here we can see the number of incoming transactions has increased since June 10th.

If we look at more detail the daily top 10 outflowing transactions can be seen from the below graph. Celsius token is contributing more than 55% of outflowing transactions out of top 10 tokens . (DAI stablecoin) has the lowest total Outflow transactions and Celsius has the highest total Outflow transactions, 1.5K (Celsius).On June 13, 2022, total outflow transactions were lower than normal, but on June 11, 2022 and June 6, 2022, they were higher than normal. 

As we can see in the heat map below, on the week of Jun 5-11 2022, there were a greater number of outflowing transactions on the Celsius network compared to the previous weeks.

If we look at more detail the daily top 10 inflowing transactions can be seen from the below graph. Celsius token is contributing more than 90% of inflowing transactions out of top 10 tokens . (Alchemix ETH) has the lowest total inflow transactions and Celsius has the highest total inflow transactions, 11.6K (Celsius). On June 13, 2022, total inflow transactions were more than normal.

As we can see in the heat map below, on the week of Jun 5-11 2022, there were a greater number of inflowing transactions on the Celsius network compared to the previous weeks.

Final Thoughts

  • Using the above analysis, we have investigated the behavior surrounding possible Celsius addresses that have circulated on Twitter during the Celsius decision to halt trading activity due to “extreme market conditions”. The number of incoming transactions has increased since June 10th 2022. 
  • According to the graph which shows how much of the total balance was contributed by Compound Wrapped BTC, more than 35% of the total balance was contributed by the Celsius network. Among the top 25 tokens held by Celsius wallets, Compound Ether ranked second. As a result, a significant number of celsius wallets use Compound Wrapped BTC tokens.
  • One of the most popular wallets is ‘0x8aceab8167c80cb8b3de7fa6228b889b1130ee8’, which contributes for 45.35% of the total Balance (USD), while the top two wallets make up for 67.09%. 65% of the total balance is held by only two wallets among the top 10. 
  • The Celsius network initially saw a good amount of inflows of tokens, but the outflow of tokens and inflow of tokens significantly decreased later. Token inflows and outflows have increased from June 6th 2022.
  • USD-pegged Tether Tokens made up 40.8% of the total outflow volume, while the combined Tether USD and Chainlink Token made up 59.38%.
  • As we can see, Tether USD alone pumped 100% of the tokens on Jun 14 2022. Due to the market conditions, the Celsius network team decided to halt all withdrawals, swaps, and transfers between accounts on Jun 12 2022.
  • Based on total inflow volume, Wrapped BTC tokens accounted for 44.86% and Top 2 (Wrapped BTC and Tether USD) tokens accounted for 63.87%. Celsius’s network can see a significant inflow of token volumes during the 12th-18th week of June 2022. 
  • We can see from the above analysis that the number of incoming transactions has increased since June 10th. 
  •  Out of the top 10 tokens, Celsius token contributes more than 55% of outflowing transactions. On June 13, 2022, the total outflow transactions were lower than usual, but on June 11, 2022 and June 6, 2022, they were higher than usual. 
  • Out of top 10 tokens, Celsius tokens contribute over 90% of inflowing transactions. 
  • The Celsius network saw a higher number of outflowing and inflowing transactions than the previous week on June 11th 2022. 

Credit: Amazing adria on twitter!!!

Leave a Reply