The collapse and eventual bankruptcy over the past week of the FTX derivatives trading exchange has caused massive volatility in the digital currency ecosystem. The total crypto market cap has fallen to $837.47 Billion, which is one of its lowest points in the last year.
FTX token (FTT), visibly caused price drops of over 92.33% to $1.78 in the 7-day trailing period. according Get data from CoinMarketCap. The coin’s collapse mimicked that of Terra (LUNA) which shed 12 months’ gains in just about a week when the TerraUSD (UST) algorithmic stablecoin collapsed earlier in May.
Investors in the industry have lost trust in FTX even before its bankruptcy filing, a move that stirred the withdrawals of funds that precipitated the trading platform’s liquidity crunch. FTT holders saw the dark future of the company and decided to sell the coins on other markets.
What the Top 10 Coins Did This Week
The past week has seen a poor performance by all the digital currencies on the top 10. Bitcoin’s value is $16,655.55, down 21.5% in the week to date. Bitcoin even dropped As low as $15682.69 per week, the lowest point in almost 2 years.
Ethereum (ETH), suffered a similar fate, falling 23.63% to $1.237.73 over the past week. Binance Coin (BNB), which is currently trading at $278.36, is up from a 20.41% slump. XRP, Polygon(MATIC), Dogecoins (DOGE), and Cardano (ADA) also experienced a drop of more than 20% in the last week.
Despite all the chaos that has been witnessed so far, the ecosystem is not yet out of control. The ripple effect of the FTX crash will be evident in the coming weeks. Investors should be cautious until the coast is clear.
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