Modeling Wallet-Level Behavioral Shifts Post-FTX Collapse: An XAI-Driven GLM Study on Ethereum Transactions

The Ethereum blockchain plays a central role in the broader cryptocurrency ecosystem, enabling a wide range of financial activity through the use of smart contracts. This paper investigates how individual Ethereum wallets responded to the collapse of FTX, one of the largest centralized cryptocurrency exchanges. Moving beyond price-based event studies, we adopt a bottom-up approach using granular wallet-level data. We construct a representative sample of Ethereum addresses and analyze their transaction behavior before and after the collapse using an explainable artificial intelligence (XAI) framework. Our proposed framework addresses data scarcity in high-resolution wallet-level daily transactions by employing a calibrated zero-inflated generalized linear fixed effects model. Our analysis quantifies distinct shifts in transaction intensity and stablecoin usage, highlighting a flight to safety within the ecosystem. These findings underscore the value of a bottom-up methodology for quantifying the user-level impact of blockchain-based shocks, offering insights beyond traditional price-level analysis through wallet-level data.

Publication Details

Journal
ArXiv.org
Published
2025-07-11
Primary Topic
Scientific Computing and Data Management
Type
article
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article

Modeling Wallet-Level Behavioral Shifts Post-FTX Collapse: An XAI-Driven GLM Study on Ethereum Transactions

ArXiv.org
Scientific Computing and Data Management
article

Modeling Wallet-Level Behavioral Shifts Post-FTX Collapse: An XAI-Driven GLM Study on Ethereum Transactions

article en

Abstract

The Ethereum blockchain plays a central role in the broader cryptocurrency ecosystem, enabling a wide range of financial activity through the use of smart contracts. This paper investigates how individual Ethereum wallets responded to the collapse of FTX, one of the largest centralized cryptocurrency exchanges. Moving beyond price-based event studies, we adopt a bottom-up approach using granular wallet-level data. We construct a representative sample of Ethereum addresses and analyze their transaction behavior before and after the collapse using an explainable artificial intelligence (XAI) framework. Our proposed framework addresses data scarcity in high-resolution wallet-level daily transactions by employing a calibrated zero-inflated generalized linear fixed effects model. Our analysis quantifies distinct shifts in transaction intensity and stablecoin usage, highlighting a flight to safety within the ecosystem. These findings underscore the value of a bottom-up methodology for quantifying the user-level impact of blockchain-based shocks, offering insights beyond traditional price-level analysis through wallet-level data.

ArXiv.org
Openalex Percentile: Top 32%
Scientific Computing and Data Management
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