The sudden rise indicates that big institutional players are showing strong interest in the token, even though it has a history connected to FTX’s financial difficulties.
With uncertainties in the market following Changpeng “CZ” Zhao’s exit as Binance CEO, the native token of the now inactive FTX crypto exchange, FTX Token (FTT), experienced a short but significant surge. In the last 48 hours, FTT’s value climbed to $4.63, marking a substantial 28% increase from $3.56.
FTT Surges After Binance Settlement: Santiment Reports Significant Growth
FTT is witnessing another surge, notably in the aftermath of Binance’s $4.3 billion settlement with the United States Department of Justice. According to on-chain analysis firm Santiment, the ten largest wallets have accumulated $12.8 million worth of FTT tokens in just 19 days.
Santiment’s data reveals an impressive 337% growth for FTT on the monthly chart, with a substantial portion of these gains occurring in the last 10 days. This surge reflects a remarkable 255% increase in FTT’s market value compared to Bitcoin, which is currently priced at $37,250.
📈 Those who took a chance on $FTT continue to be rewarded, with a second rally for #FTX's native token coming after yesterday's #Binance news. Its price appears to have been boosted by the 10 largest wallets accumulating $12.8M worth of coins in 19 days. https://t.co/V3QNq91asF pic.twitter.com/DL5pkVfW96
— Santiment (@santimentfeed) November 23, 2023
FTX’s Asset Liquidation Sparks Cryptocurrency Market Activity
FTX’s recent strategy of liquidating assets and transferring substantial funds among various exchanges has created notable activity in the cryptocurrency market. Between November 21 and 22, FTX and its affiliate, Alameda Research, executed asset transfers totaling $474 million, potentially impacting the FTT price negatively.
This move is part of a larger initiative to handle the financial obligations of the defunct exchange, setting the stage for the anticipated FTX 2.0 phase. The FTX team aims to relaunch the exchange by the second quarter of 2024.
Despite FTT rallying after the Binance and CZ news, Binance’s BNB token faced a 13% decline, dropping to $235. DefiLlama data indicated Binance’s 24-hour outflows surpassing $1 billion on November 22 at 3:30 pm Hong Kong time, with net outflows over seven days totaling $703.1 million.
In his introductory post on X (formerly Twitter) as Binance’s new CEO, Teng expressed confidence in the platform’s current strength. Teng outlined his initial focus on reinstating investor confidence, collaborating with regulators, and promoting Web3 adoption.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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