Bitcoin, Solana, OKB, and Chainlink Emerge as Top Gainers a Year After FTX Crash
Summary:
One year since the shut down of the FTX exchange, the cryptocurrency market has seen considerable growth, with Bitcoin notably increasing by approximately 120%. Solana (SOL), OKB and Chainlink (LINK) yielded significant profits had they been bought during November 2022 lows. Legal pressure in the US and limited exposure to the FTX collapse has impacted the performance of other tokens such as BNB.
A full year has passed since the shutdown of the FTX exchange – an occurrence that is increasingly being viewed as a pivotal moment for Bitcoin (BTC), which has since witnessed an approximately 120% growth. In the aftermath of the FTX downfall in November 2022, several cryptocurrencies faced critical losses, contributing to around $300 billion being erased from the market cap. The FTX-affiliated tokens, including Solana (SOL), Serum (SRM), and FTX Token (FTT), were the hardest hit.
The landscape, however, has significantly transformed a year on from the FTX fallout, with BTC and the majority of affected cryptocurrencies seeing robust improvements. Some of these are top 30 market cap performers offering substantial profits had you invested in them during the November 2022 low.
Solana, for instance, slumped over 50% to $8 in the wake of the FTX incident, primarily due to FTX and its associate company, Alameda Research, holding approximately 55 million SOL — raising concerns of a liquidity-driven selloff. However, had you purchased SOL a year ago, you would be making a profit of over 660% today.
Solana's performance is largely ascribed to the overall bullish sentiment in the cryptocurrency market, stimulated by anticipations of the Spot Bitcoin ETF getting greenlit in the U.S. Moreover, SOL's price also gained from the ebbing concerns of a likely FTX selloff.
OKB, a token from the OKX crypto exchange and a rival of FTX Token, was among the tokens least impacted by the FTX debacle and has seen a substantial price hike since. An investment in OKB a year back when it was at $17.20 would have reaped 275% profits today.
The boost in OKB's price came at the expense of Binance and its token, BNB, which has markedly underperformed the market over the past year, with only a 16% rise from the FTX trough, especially under legal scrutiny in the U.S.
Chainlink (LINK) too took a hit of about 40% in the FTX aftermath. But its relatively limited exposure to the exchange's collapse, bolstered by product development updates, led to a remarkable price turnaround since the incident. Going by its current performance, a LINK investment made in November 2022 when it was $5.68 could have yielded more than 180% returns today.
Several factors contributed to the positive trajectory of LINK's price, including the roll-out of a new proof-of-reserve product, greater adoption rates, and enhanced interest among institutional investors as indicated by Grayscale's Chainlink trust trading at a 170% premium to LINK's spot price.
Note: Investing comes with inherent risks and potential losses. Investors are urged to carry out their own due diligence before making decisions. This article is devoid of any investment advice or recommendations.
Published At
11/19/2023 7:52:26 AM
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