Reflecting on a Year Since the FTX Exchange Collapse and the Rise of Bitcoin
No one can forget November 2022 — a year that shook the world of cryptocurrency when the FTX exchange collapsed. This event wiped off nearly $300 billion from the market capitalization, impacting several crypto tokens severely. Surprisingly, the downfall resulted in selecting Bitcoin (BTC), which has since magnified approximately 120% from a year ago.
The maximum sufferings were borne by tokens with substantial financial ties to FTX, such as Solana (SOL), Serum (SRM), and FTX’s own token, the FTX Token (FTT). However, a year later, not only has BTC reached new heights, but many other cryptocurrencies that were affected by the FTX collapse have also seen substantial growth. If bought in November 2022, these are some of the top gainers (from the top-30 by market capitalization) which would’ve yielded the greatest profit.
Solana’s Price Soars
Solana’s price declined more than 50% to $8 in the aftermath of the FTX collapse. The primary reason behind this selloff was that FTX and its sister firm, Alameda Research, held about 55 million SOL, which ignited fears of a selloff to cover liquidity shortages. However, purchasing SOL a year ago would have resulted in a profit of over 660% today.
The surge in Solana’s value could be attributed to a positive sentiment in the crypto market propagated by hopes of a Spot Bitcoin ETF’s approval in the U.S. Simultaneously, SOL’s price also gained from the diminishing fear of a potential selloff by FTX.
OKB: An Unlikely Success Story
The FTX debacle had a minimal effect on OKX exchange’s token, OKB. Furthermore, the downfall of its top competitor resulted in a positive impact on its price. If investors had bought OKB at the FTX-led bottom of $17.20 a year ago, they would have garnered a 275% profit today.
OKB’s price gains came at the expense of Binance, whose token BNB (BNB) underperformed the market as it faced legal pressure in the United States.
The Rise of Chainlink
Chainlink (LINK) experienced a drop of up to 40% following the FTX collapse. However, its lower exposure to the crypto exchange, coupled with several development updates, resulted in an impressive price recovery. Remarkably, a purchase of LINK in November 2022 at $5.68 would have produced over 180% profits today.
Several factors can be credited for helping LINK price rally in recent months, such as the launch of a proof-of-reserve product, growing adoption rates, and growing demand amongst proficient investors, indicated by Grayscale’s Chainlink trust trading at a 170% premium to LINK’s spot price.
Disclaimer: This article does not contain any form of investment advice or recommendations. Investment and trading involve risks. Readers are advised to conduct thorough research before making a decision.