Three Altcoins at Risk of Price Dips Due to FTX Liquidations, Says Analytics Firm
The crypto analytics firm Messari has identified three altcoins that may experience price drops as a result of upcoming FTX liquidations. According to Messari, FTX and Alameda currently hold significant amounts of Dogecoin (DOGE), Tron (TRX), and Polygon (MATIC), with values of $37 million, $33 million, and $22 million respectively.
However, Messari points out that the impact of these holdings depends on their relative size compared to each asset’s trading volume. While FTX’s holdings of Bitcoin (BTC) and Ethereum (ETH) are relatively small in relation to their respective trading volumes, the same cannot be said for DOGE, TRX, and MATIC. These altcoins have much less liquidity, so FTX’s holdings represent a higher percentage of their weekly volumes.
Current Prices and Rankings
As of now, DOGE is trading at $0.0613 and has seen a 1.5% increase in the past 24 hours. TRX is trading at approximately $0.0815 with a more significant gain of over 5% in the past day. MATIC is priced at $0.511 and has experienced a 1.75% increase in the past 24 hours.
Other Holdings by Alameda
In addition to the aforementioned altcoins, Messari highlights that Alameda holds $720 million worth of Solana (SOL) and $66 million worth of Aptos (APT). However, these holdings primarily consist of vesting tokens and will be liquidated gradually, reducing their potential impact on prices.
Hot Take: Potential Impact on Altcoin Prices
The holdings of DOGE, TRX, and MATIC by FTX and Alameda could have a significant impact on the prices of these altcoins due to their lower liquidity compared to BTC and ETH. As FTX liquidates its holdings, the market may experience price dips for these three cryptocurrencies. Traders and investors should closely monitor these developments to make informed decisions about their altcoin portfolios.
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