It has been a year since the collapse of the FTX exchange, an event that had a profound impact on the cryptocurrency market. The collapse saw nearly $300 billion wiped off the market cap, affecting several cryptocurrencies. However, as time has passed, we can now observe the recovery and growth of certain cryptocurrencies that were impacted by the FTX collapse.
One of the top gainers that emerged from the FTX collapse is Solana (SOL). Immediately after the collapse, Solana’s price plummeted by over 50% to $8. The sell-off was mainly driven by fears of a dump to plug liquidity holes, as FTX and its sister firm, Alameda Research, held a significant amount of SOL. However, those who bought SOL at this low point a year ago would now be enjoying a profit of over 660%. This increase in price can be attributed to the overall positive sentiment in the crypto market and the anticipation of a spot Bitcoin exchange-traded fund approval in the United States. Additionally, as fears about a potential dump by FTX subsided, SOL’s price further benefited.
Another cryptocurrency that experienced substantial gains after the FTX collapse is OKB, the token of OKX crypto exchange. Surprisingly, OKB was one of the least-affected tokens by the FTX fiasco. In fact, it has significantly benefited from the demise of its top rival. Investors who purchased OKB at the FTX bottom of $17.20 a year ago would now be enjoying a profit of 275%. On the other hand, Binance suffered losses, and its BNB token underperformed the market due to legal pressure in the United States. BNB only rose by 16% from the FTX bottom, lagging behind many of the top 30 cryptocurrencies.
While some cryptocurrencies flourished in the wake of the FTX collapse, others struggled to recover. Chainlink (LINK) is one such example. Following the collapse, LINK’s price fell by as much as 40%. However, due to its lower exposure to the FTX exchange and various development updates, LINK has experienced a significant price recovery. Buying LINK at $5.68 in November 2022 would have yielded profits of over 180% today. Some of the factors contributing to LINK’s recent rally include the launch of a new proof-of-reserve product, growing adoption, and increasing demand among professional investors. This demand is evident in Grayscale’s Chainlink Trust, which trades at a 170% premium to LINK’s spot price.
The FTX collapse was a major event in the world of cryptocurrencies. While it had a detrimental impact on certain tokens, some cryptocurrencies managed to bounce back and thrive. Solana and OKB emerged as top gainers, showcasing significant profit potential for those who recognized the opportunity during the FTX collapse. On the other hand, Chainlink struggled initially but has since made a substantial recovery. As the cryptocurrency market continues to evolve, it is essential to learn from events like the FTX collapse and carefully analyze the potential risks and rewards of different investments.