Despite the token’s historical association with FTX’s financial difficulties, the surge indicates significant institutional interest.
Amid market uncertainty surrounding Changpeng “CZ” Zhao’s departure as CEO of Binance, the native FTX Token (FTT) of defunct crypto exchange FTX experienced a brief bull run. FTT has increased in value over the last 48 hours, trading at $4.63 at the time of writing, a 28% increase from $3.56.
According to on-chain analysis firm Santiment, the ten largest wallets accumulated $12.8 million in tokens in 19 days following Binance’s $4.3 billion settlement with the US Department of Justice.
According to Santiment, FTT has grown 337% on a monthly basis, with a significant portion of this growth occurring in the last 10 days, resulting in a 255% increase in FTT’s market value compared to Bitcoin BTC$37,646.
The recent strategy of FTX of liquidating assets and transferring substantial funds across multiple exchanges has heightened activity in the cryptocurrency market. FTX and its affiliate, Alameda Research, executed asset transfers totaling $474 million on November 21-22, which could depreciate the FTT price.
This move is part of a larger effort to manage the defunct exchange’s financial obligations, which could pave the way for a new phase known as FTX 2.0. The FTX team intends to relaunch the exchange in the second quarter of 2024.
Despite the FTT token rallying in response to the Binance and CZ news, Binance’s BNB BNB $235 token fell 13% to $235. According to DefiLlama data, Binance’s 24-hour outflows surpassed $1 billion on November 22 at 3:30 p.m. Hong Kong time. Over the course of seven days, the exchange’s net outflows totaled $703.1 million.
Teng stated in his first post as Binance’s new CEO on X (formerly Twitter) that “the foundation on which Binance stands today is stronger than ever.” Teng stated that his initial priorities would be to restore investor confidence, collaborate with regulators, and drive Web3 adoption.
Conclusion
The recent surge in the price of FTT is a positive development for FTX and its investors. The token is likely to continue to benefit from the Binance effect and the anticipation of the relaunch of FTX 2.0. However, it is important to note that the cryptocurrency market is volatile, and prices can fluctuate significantly. Before investing in any cryptocurrency, investors should conduct their own research.
