FTX Collapse: A Year Later, the Aftermath on Crypto Market
It’s been a year since the demise of the FTX exchange — an event that’s now increasingly looking like it was the Bitcoin (BTC) bottom, which is up roughly 120% from a year ago.
In November 2022, the FTX collapse wiped nearly $300 billion off the market cap, impacting several cryptocurrencies. The ones that suffered the most were tokens with deep financial ties to FTX, including Solana’s (SOL), Serum (SRM) and the exchange’s native FTX Token (FTT).
But a year later, things have improved for BTC and most cryptocurrencies impacted by the FTX collapse.
Solana up 660% from FTX crash bottom
Solana’s price plummeted by over 50% to $8 after the FTX collapse. The sell-off occurred primarily because FTX and its sister firm, Alameda Research, held about 55 million SOL, triggering fears of a dump to plug liquidity holes. Nonetheless, buying SOL a year ago would have produced a profit of over 660% today.
Solana’s gains have primarily stemmed from an upside sentiment in the crypto market, led by hopes for a spot Bitcoin exchange-traded fund approval in the United States. At the same time, SOL’s price has also benefited from subsiding fears about a potential dump by FTX.
FTX Token rival OKB is up 275%
OKX crypto exchange’s token OKB was among the least-affected tokens by the FTX fiasco. Buying OKB at the FTX bottom of $17.20 a year ago would have yielded investors a 275% profit today.
OKB’s price gains were Binance’s loss, and its BNB token has underperformed the market significantly as the exchange faces legal pressure in the United States. BNB has underperformed many of the top 30 cryptocurrencies over the past year, rising only 16% from the FTX bottom.
Chainlink
Chainlink’s (LINK) had fallen by as much as 40% following the FTX collapse. Notably, buying LINK in November 2022 at $5.68 would have produced over 180% profits today.
Factors that helped the LINK price rally in recent months include launching a new proof-of-reserve product, growing adoption, and increasing demand among professional investors, as suggested by Grayscale’s Chainlink Trust trading at a 170% premium to LINK’s spot price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: cointelegraph.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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