FTT might just be shading Bitcoin and Ethereum, but here’s the catch
If you have never heard of FTT before, you’re not alone. With Bitcoin, Ethereum, and other altcoins dominating the space, many tokens are barely able to make a mark. FTT, however, has seen some compelling figures of late.
FTX Token [FFT], the exchange token of the cryptocurrency derivatives platform FTX, might be one of the most profitable altcoins in the crypto-market right now. This is not opinion or speculation, but the extrapolation of on-chain data. Here’s a lowdown on FTT, where it stands, and what kind of gains it might bring.
How is FTT really faring
Let’s talk about the price first. FTT was trading at $42, at press time, after hiking by 71% in a recent rally. In fact, its latest bout of appreciation has been greater than Bitcoin’s (45.8%) and Ethereum’s (67%). What’s more, the token is up by 1,188% in one year too.
But, this is where it gets interesting. FTT holders, on average, are some of the most profitable investors at the moment. Consider this – The average balance on every address currently comes up to $1.2 million.
This, despite the fact that the network has just 29k addresses in all. This is an important factor since low addresses with a high value of transactions produce such figures. Presently, the network only conducts a meager average of 400 transactions on a daily basis. However, the value of every such transaction is $148,000, plus or minus a couple of thousand dollars.
With respect to the value of the token itself, it’s not surprising that FTT owns Bitcoin, Ethereum, and the likes of Cardano. In fact, the MVRV also supported the assertion that FTT has a significantly better value than the aforementioned cryptos.
Is this the token for you?
There are a few caveats, however. FTT doesn’t exactly cater to a conventional class of investors. Over 90% of the supply is owned solely by whales. The retail section (those who own >0.1% of the supply), on the other hand, only have 1.74% ownership.
Additionally, these whales are also primarily mid-term holders with an average time of 5-6 months. This is one of the biggest reasons why this altcoin may not suit those who trade in lower volumes.
However, the most recent funding round for FTX, which added $900 million to its valuation, pushed the total value to $18 billion. This is a 1,400% increase since last year when it was valued at just $1.2 billion. So, if this entices more investors into the playing field, the token can prove to be an opportunity for retail investors as well.
Beware of whale actions hitting the market hard though. That’s one risk retail investors would have to strap up for.
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