Can FTX’s FTT be the next BNB?

The domestic coins of the exchanges have had an impressive year. While Binance Coin (BNB) and Uniswap (UNI) lead the way in this category, there has been constant debate over whether FTX and its FTT token will be included in the big asset ranking.

The question now arises: Will FTT ever be successful?

Like most altcoins, FTT also made a strong recovery in 2021. On top of that, it’s also one of the top performing altcoins out there, up 885% year-to-date and currently trading at $ 55.28 per share.

FTT .Price Chart | Source: Tradingview

What does the on-chain ad say?

An important metric that highlights the significant development is the massive increase in FTT trading volume over the past week. Above any previously recorded average for 2021, the performance for FTT is pretty clear right now.

follow mood, FTT’s on-chain performance is still impressive at the time of going to press.

Source: Santiment

In line with the growing trading volume, FTT-active addresses also reached an all-time high (ATH).

In addition, the FTT held by whales is also at the ATH level. Since then, Santiment has recorded a significant increase in the number of addresses held 10,000 to 1,000,000 FTT. About 36 new whales have added 30% to the ranks of the top FTT hodlers in a relatively short period of time.

Source: Santiment

The recent surge in large investor numbers may seem insignificant at first, but considering the average whale holds between $ 560,000 and $ 56 million in FTT, an increase in buying pressure could mean millions of dollars.

The bullish thesis is further confirmed by the network’s growth, which has risen to new all-time highs.

Source: Santiment

Based on the numbers above, there may be a bullish divergence as the overall market shows signs of a downtrend, but an immediate rebound may or may not occur.

However, given some new developments, investors can look out for long-term returns with FTT.

FTT. Combustion mechanism

Exchange FTX recently announced expansion through two subsidiaries in Gibraltar and the Bahamas. The subsidiary FTX Digital Markets is currently accredited as a digital asset business by the Bahamas Securities Commission. While this could be positive news for FTX, the main reason the FTT is expected to rise regardless of future trends is because of the coin-burning protocol.

FTT has a firm supply of 350 million and is expected to continue burning until the circulating supply is halved. It seems pretty similar when compared to BNB. Especially since the quarterly BNB has the same goal of reducing the circulating supply until 50% is left.

And we all experienced the BNB boom in the last 1 year.

While FTX burns 33% of the generated fees, the burn log takes place every two weeks and not quarterly as with Binance. At the same time, it keeps the FTT’s inflation rate at 1.82%, which is very impressive. Just like Binance, FTX can stand the test of time.

It is therefore very likely that FTT will continue the success story of BNB and will take a parabolic orbit in the future.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Mr. Teacher

According to AMBCrypto

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