In one of the biggest pullbacks in the cryptocurrency market, FTX Token (FTT), Solana (SOL) and Polygon (MATIC) prices witnessed a massive downturn. Although all major digital asset prices tanked sharply after it was announced that one of the biggest crypto exchanges, FTX will be acquired by rival Binance.
In the wake of one of the most controversial events in the history of crypto, the crypto market spiraled into another crisis. The global crypto market cap tanked below $1 trillion retreating 11.81 per cent over the last 24 hours to $865.24 billion. Bitcoin (BTC) tumbled by more than 10 per cent to hit the lowest level since November 2020. Ethereum (ETH) witnessed a sharp plunge of more than 18 per cent over the past day. It seems Binance-FTX Spat has rocked the entire cryptocurrency market dragging the industry in deep red.
FTT in Free Fall
The FTX Token is in free fall crashing nearly 75 per cent in the past 24 hours from roughly $22 to $4.58. After a brief uptick FTT reached a low of $3.12 on November 9.
The crash comes on the heels after both Binance CEO Changpeng Zhao and FTX CEO Sam Bankman-Fried confirmed that Binance would acquire FTX as the latter faced a “significant liquidity crunch.” The native token of Sam Bankman-Fried’s crypto exchange has lost nearly $2.5 billion from its market cap. As per crypto analytics platform, Coinalyze, FTT futures trading volume suffered a meltdown.
Nic Carter, a partner at Castle Island Ventures, which focuses on blockchain investments remarked,
“It’s probably the most dramatic deal I’ve ever seen in the history of the crypto industry.”
$FTT trading volume is thermonuclear today. $3.3 billion so far(futures market). pic.twitter.com/RW5nXwvS5I
— Coinalyze (@coinalyzetool) November 8, 2022
Solana Out of the Top 10 Cryptos
Meanwhile, Solana (SOL) dropped significantly by more than 30 per cent over the past 24 hours, with the current price standing at $19.54. Overall, Solana has lost about 38 per cent in the past week. The current market cap for Solana stands at $6.72 billion. Touted as an Ethereum killer SOL posted one of the lowest prices since July 2021 amid the Binance FTX feud. The sudden collapse has pushed Solana (SOL) out of the top 10 largest coins, a position it has enjoyed for a long time.
Experts anticipate that Solana (SOL) might remain unstable until crypto investors are guaranteed that Alameda’s SOL holdings will not destabilize the token.
MATIC Tanks Significantly
Amidst the Binance-FTX hullabaloo, Polygon (MATIC) recorded one of the biggest falls, slumping more than 18 per cent in the last 24 hours. Last week, the native token of the Polygon network was on an upward trajectory. MATIC emerged as one of the best performing assets gaining more than 13 per cent in a span of 24 hours. However, with the news of Binance acquiring cryptocurrency exchange FTX, Polygon (MATIC) plummeted giving in to the bearish market pressure.