{"id":1877,"date":"2022-01-28T07:21:30","date_gmt":"2022-01-28T07:21:30","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=1877"},"modified":"2022-02-07T05:57:31","modified_gmt":"2022-02-07T05:57:31","slug":"why-ftx-token-ftt-defies-the-market%ef%bf%bc","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/why-ftx-token-ftt-defies-the-market%ef%bf%bc\/","title":{"rendered":"Why FTX Token (FTT) Defies the Market"},"content":{"rendered":"\n

The cryptocurrency market stalled in its recovery, dragging down Bitcoin (BTC) just above $37,000<\/a> with an additional weakness for Ethereum (ETH). <\/p>\n\n\n\n

Most altcoins also continued to slide, with the exception of the FTX Token (FTT), the native asset of the FTX Exchange.<\/p>\n\n\n\n

FTT grew to $38.20, from a most recent low of around $32, up 2.5% in the past 24 hours. The token is still near a three-month low and is about 50% down from its all-time high. But the fast recovery on growing volumes shows derivative trading is here to stay, with the potential to accrue new positions after the latest series of liquidations. <\/p>\n\n\n\n

FTT is viewed as one of the assets potentially continuing to benefit even during a bear market. If the FTX Exchange continues to attract users and turns into the biggest crypto market, the value of FTT may reflect the fund inflow. <\/p>\n\n\n\n

At current prices, more extreme predictions see FTT follow the trajectory of Binance Coin (BNB)<\/a>, which easily achieved three-digit valuations. So far, FTT has failed to touch the $100 range, but the 2,400% yearly growth in FTX Exchange trading volumes may continue to boost the token in the coming months.<\/p>\n\n\n\n

What is the FTX Token (FTT)<\/strong><\/h3>\n\n\n\n

FTT is a multi-chain token represented on Ethereum, Binance Smart Chain, and Solana. FTT is the most active on Ethereum, with 24,254 addresses. The Solana bridge smart contract holds more than 12M tokens as Wrapped FTT to use on Solana DeFi, decentralized exchanges, and for other trading purposes.<\/p>\n\n\n\n

The token wraps up three of the most active trading pairs on the FTT exchange. The token has a turnover of $251M in trades in 24 hours. <\/p>\n\n\n\n

Exchange tokens usually offer advantages in paying lower fees for some trades. The FTT token takes up just a small portion of overall FTT trading, which has reached above $12B in 24 hours. <\/p>\n\n\n\n

What<\/strong> Made the FTX Exchange Popular<\/strong><\/h3>\n\n\n\n

The FTX Exchange started off as another small market operator to compete with exchanges well-established in cryptocurrency trading, including Kraken<\/a>, Binance, OKEx<\/a>bi and others. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

FTX started with organic growth but added aggressive marketing and fundraising in the past year. Combined with the bull market and interest in derivatives, FTX soon boosted its account number and trading volumes. <\/p>\n\n\n\n

The decision to become a multi-chain exchange added to the usage of the platform. In previous years, rapid growth was viewed with skepticism as the effect of bots or faked accounts. But FTX has shown real growth in spot and futures markets. <\/p>\n\n\n\n

The FTX Exchange saw some of the record liquidations in the middle of 2021, and broke its spot trading record last November, at $13.9B in 24 hours. Most of the volumes on FTX come from USDT pairings. <\/p>\n\n\n\n

FTX also has a relatively small pairing with Bitcoin (BTC), becoming the third-largest spot market for trading the leading coin.<\/p>\n\n\n\n

FTX Affects Altcoin Markets<\/strong><\/h3>\n\n\n\n

Beyond BTC and Ethereum (ETH) derivatives, FTX has opened leveraged markets for altcoins. One of the risks for altcoins is a short squeeze, as a less liquid market may be easier to attack. <\/p>\n\n\n\n

FTX funding anomalies may signal coin moves and potential rapid price swings for small-scale altcoins. <\/p>\n\n\n\n

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\ud83d\udcc8Abnormal funding rate spotted on FTX on AXS-PERP.

Funding rate is -0.01% per hour!
That is 0.44% a day, or 3.05% a week!
Shorts are getting destroyed! \ud83d\udcc8

Earn interest by counter trading them here : https:\/\/t.co\/AeZy4uFZWq<\/a>$AXS<\/a><\/p>— FAB – Crypto Extreme Funding Rates (@FundingAlertBot) January 27, 2022<\/a><\/blockquote>