Steadily Climbing The Ranks
Amidst all the recent carnage, FTX’s FTT token has managed to edge its way higher in terms of market cap ranking. FTT is now on the verge of entering the Top 20, whereas little over a month ago FTT was hovering at the number 27 spot. This is a classic example of the shift to quality that takes place in uncertain times. The bear market of 2018 actually saw Binance’s BNB token outperform Bitcoin. Investors look for strong models and companies in bearish times, especially if a project or company can offer additional revenue without incurring tremendous risk.
DeFi Takes A Back Seat
DeFi offers amazing income opportunities but it doesn’t come without significant risk. DeFi is inherently risky and there isn’t much that can be done to eradicate that risk. This dynamic is largely responsible for the severe drops seen in the DeFi space. Not only is the DeFi sector a risk-on asset class but it also ranks the highest when compared with other risk-on assets. Unfortunately, DeFi will always take a back seat during bearish periods. There is always the likelihood of a few exceptions but as a whole DeFi tends to suffer during times like this.
Discovering A Future Leader
The FTX name is already well known but you will be surprised at how many are only now becoming acquainted with the platform. Sam Bankman-Fried also appears to be getting a lot more coverage in the media and it seems as if investors are beginning to associate value with FTX. It’s almost as if top Crypto projects are beginning to form their own unique “store of value” proposition. An asset that simultaneously has revenue connected to it like Binance or FTX is very attractive to traditional investors. In their mind, FTX or BNB extends beyond speculation, as each entity reports earnings and not merely price appreciation. These business-based tokens seem to eventually rise to more prominent levels and it appears as if FTX is next!
Showing More Stability
In comparison to altcoins in general, FTX has faired a lot better than most. This is quite clearly visible in the market cap ranking. Either FTX is growing ahead of the pack, or the pack is falling behind. In this particular instance, it is more likely that the pack has taken strain during the recent collapse, while FTX has been more resilient. Signs of strength will further serve to promote the idea that FTX is more of an investment-grade Crypto than the majority of altcoins out there. I wouldn’t be surprised if FTX breaks the TOP 15 by the end of the year!
Disclaimer
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This article was first published on Sapphire Crypto.
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