It has been a year since the demise of the FTX exchange, an event that had a significant impact on the cryptocurrency market. The collapse resulted in a loss of nearly $300 billion in market cap, affecting various cryptocurrencies. Tokens with deep financial ties to FTX, such as Solana (SOL), Serum (SRM), and the native FTX Token (FTT), experienced the most significant decline in value.
The Resilience of Bitcoin
Surprisingly, Bitcoin has rebounded strongly from the FTX collapse, with its price now up approximately 120% from a year ago. This remarkable recovery has led many to speculate that the FTX collapse may have marked the bottom for Bitcoin. Despite the initial market turmoil, buying Bitcoin in November 2022 would have yielded substantial profits today.
Following the FTX collapse, Solana’s price plummeted by over 50% to $8. The sell-off was mainly driven by concerns regarding FTX and its sister company, Alameda Research, holding a significant amount of SOL. The fear of a massive sell-off to address liquidity holes led many investors to abandon the token. However, those who bought SOL a year ago would have reaped immense profits of over 660% today. Solana’s gains can be attributed to the overall positive sentiment in the crypto market, fueled by hopes for the approval of a spot Bitcoin exchange-traded fund in the United States. Additionally, the subsiding fears of a potential dump by FTX have contributed to SOL’s price increase.
OKB: A Smart Investment
Unlike many other tokens affected by the FTX collapse, OKB, the native token of the OKX crypto exchange, experienced minimal impact. In fact, OKB has benefitted significantly from its top rival’s demise. Buying OKB at the FTX bottom of $17.20 a year ago would have resulted in a profitable investment, offering investors a 275% return today. The success of OKB can be seen as Binance and its BNB token underperform in the market due to legal pressures faced by the exchange in the United States.
Following the FTX collapse, Chainlink’s price dropped by 40%. However, due to its lower exposure to the crypto exchange and positive development updates, Chainlink has experienced a significant price recovery since then. Buying Chainlink in November 2022 at $5.68 would have yielded profits of over 180% today. The recent rally in the LINK price can be attributed to various factors, including the launch of a new proof-of-reserve product, increasing adoption, and growing demand among professional investors.
A year after the FTX collapse, the cryptocurrency market has undergone substantial changes. While some tokens have experienced significant gains, others have struggled to maintain their value. The resilience of Bitcoin and the strong performance of tokens like Solana, OKB, and Chainlink indicate the continued potential for profitable investments in the crypto market. However, it is essential for investors to carefully analyze the market and consider the factors that may influence the value of these tokens in the future. As the crypto market evolves, opportunities for both gains and losses will continue to arise.
