FTX Collapse: How Crypto Tokens Have Recovered One Year Later
It’s been a year since the collapse of the FTX exchange, an event that wiped nearly $300 billion off the market cap, affecting many cryptocurrencies. But a year later, most impacted cryptocurrencies, including Bitcoin (BTC), have seen significant improvement.
Solana’s Remarkable Recovery
Following the FTX collapse, Solana’s price plummeted, but buying SOL a year ago would have produced a profit of over 660% today. SOL’s gains were driven by overall positive sentiment in the crypto market, hopes for a Spot Bitcoin ETF approval in the U.S., and subsiding fears about a potential dump by FTX.
OKB and BNB: A Tale of Contrasting Fortunes
OKX crypto exchange’s token OKB was among the least-affected tokens by the FTX fiasco. Buying OKB at the FTX-led bottom of $17.20 a year ago would have yielded investors a 275% profit today. In contrast, Binance’s BNB underperformed the market significantly, up only 16% from the FTX bottom, as the exchange faces legal pressure in the United States.
The Resilience of Chainlink
Chainlink (LINK) experienced a sharp price recovery since the FTX collapse, with a growth of over 180% for those who bought it in November 2022. Factors contributing to LINK’s price rally include the launch of a new proof-of-reserve product, growing adoption, and increasing demand among professional investors.
Hot Take: Cryptocurrency Tokens Survive and Thrive After FTX Collapse
Despite the initial impact of the FTX collapse on various crypto tokens, most have shown resilience and strong recovery over the past year, with significant profits for investors who bought during the lows. The recovery demonstrates the robustness of the cryptocurrency market and the ability of tokens to bounce back from challenging events.
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