FTX’s FTT Token Rallies 30%, Is This Binance Effect or FTX 2.0 Reopening?

As the events at crypto exchange Binance unfold, FTX’s native FTT token has witnessed a mega price rally gaining over 55% over the last 48 hours. At press, the FTT token is trading 30% up at a price of $4.63.

FTT Token Whale Accumulation

FTX’s native token FTT has registered a staggering 337% growth on the monthly chart. Most of the gains have come over the last 10 days amid a heavy accumulation by the top 10 whale wallets. During this period, the FTT token market value is up by 255% vs. that of Bitcoin.

Investors in $FTT are experiencing continued gains, as FTX’s native token sees a second surge following recent developments at Binance, reports Santiment. The token’s value seems to have received a boost, evidenced by the 10 largest wallets accumulating $12.8 million worth of coins in just 19 days.

Binance Effect or FTX 2.0 Reopening?

FTX’s recent approach of liquidating assets and transferring substantial funds across different exchanges has triggered heightened activity in the cryptocurrency market. In a significant move, FTX and its affiliate, Alameda Research, executed a remarkable transfer of assets totaling $474 million.

This strategic step is part of a broader initiative aimed at handling the exchange’s financial responsibilities and potentially setting the stage for a new phase referred to as “FTX 2.0.” Notably, this action unfolds amid Binance’s $4.3 billion settlement with the United States Department of Justice.

The recent surge in FTT is remarkable, considering its relatively limited utility. This rally indicates substantial institutional interest, despite the token’s historical connection to FTX’s bankruptcy issues. Earlier in the month, FTT achieved a year-to-date high of $4.3, signaling a robust recovery from the previous year’s downturn and reflecting growing investor confidence in the potential launch of a revamped version of the trading platform.

In contrast, Binance’s BNB token witnessed a decline, experiencing a 13% drop to $235. The crypto exchange also witnessed a staggering $1 billion net outflows in a single day. Binance’s current challenges bear some resemblance, though not identical, to the issues FTX confronted last November, which eventually led to its collapse. The uncertainty surrounding Binance’s future, coupled with the clearer trajectory for FTX, has cast a positive outlook on FTT, garnering interest from both retail and institutional investors.

At press time, the FTT token has surged past its key resistance level of $4.408. If its price continues to sustain at those levels, it can rally to its next major resistance of $4.9 and even beyond.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.