According to data analyzed by Glassnode, the number of active addresses trading on FTX’s FTT token will be close to zero throughout 2022. crypto slateThe token appears to have been relatively inactive on-chain before Binance announced its potential acquisition of FTX.
Given that most activity on the exchange takes place off-chain and FTT is FTX’s native token, most users are likely to keep their FTT tokens in FTX’s custodial wallet rather than cold storage. . Additionally, the lack of active addresses supports this proposition, as retail investors with assets on FTX do not count towards the chain’s active addresses.
The token traded at $38 in January and hit a high of $53 in March. It dropped to about $30 by May, then traded in the $21-$32 range until November 6, when rumors of potential liquidity problems began circulating.
Rumors started over the weekend of November 6-7 when Binance CEO CZ announced that the company would liquidate the FTT token. FTX owns 99.6% of his total supply, but new addresses interacting with FTT tokens surged after the new ones.
At the time of writing, FTT is trading at just $5.20 amid extreme volatility for the day with highs of $20 and lows of $2.60.
Prior to October, 60% of FTT supply was held in smart contracts, but this dropped to around 5% as the onslaught of disclosures about FTX rocked the market. However, FTT’s open interest and his 24-hour volume surged to year-highs during the same period.