Last part of our altcoin newsletter for this year 2022; and we end with very marked falls and a surprising climb.
- FTX’s FTT fell to an all-time low this week.
- Litecoin is gearing up for its next halving with a market rally.
We closed with big drops across the entire cryptocurrency market. The truth is, this has been a very negative year for the market, and last week’s news reflects that.
One of the most emblematic cases, without a doubt, is that of the FTX exchange token. While many may think this name should no longer be on the market, they might be surprised.
Its token, FTT, continues to make gains on exchanges that still hold it as a peer, albeit with fairly low trading volumes. Now, after the capture of Sam Bankman-Fried (although he will be released on bail later), said asset has crashed again and reached its lowest price ever.
This seems no less than the fair fate of a token that was not just issued by the most hated company in the cryptocurrency industry right now. The FTT token was used as collateral for FTX debts and bonds and played a key role in the debacle that wiped billions of dollars from the wallets of investors and traders around the world.
Solana in the abyss, and the return of Litecoin?
The other plummeting asset we have been reporting on in recent days is the Solana (SOL) cryptocurrency. After establishing itself as one of Ethereum’s top contenders in the race for smart contracts, DeFi and NFT, Solana has had a year to forget.
And this bad year looks set to end even worse, with SOL’s value falling to its lowest price in nearly two years. In December, the cryptocurrency (one of the 20 most valuable in the market) fell more than 20%, returning to February 2021 levels, before the turbulence the market experienced towards the end of that year.
Given its all-time high, Solana is down about 96%. And this year alone, the cryptocurrency has depreciated by 95% after starting this year 2022 above $170 per unit.
However, Litecoin looks set to launch its own bull run. This week it is up 10%, and although it hasn’t recovered from the levels of a month ago, the bullish expectation is starting to rise near its third halving.
With this decrease in the issuance of LTC in its network, which occurs in Bitcoin every four years, investors are starting to look positively at the future of Litecoin in the market.
Bitcoin versus Altcoins
In a “crowded” market, according to research firm Kaiko, bitcoin has reached its highest annual correlation with altcoins. In other words, the price behaviors of BTC and the rest of the cryptocurrencies have been linked and are too similar.
Meanwhile, the Coinbase exchange is positive about the future of BTC and Ethereum among institutional investors. Historically, businesses have chosen bitcoin, although they may also consider Ethereum when investing.
After all, they are the two most important assets in the market, which Twitter recently acknowledged by including charts of both cryptocurrencies. Paxful, one of the largest peer-to-peer exchanges on the planet, is moving in the opposite direction: removing the ETH exchange from its platform.
For now, this seems to end a very busy, albeit negative, year for the market.