Eight, a cryptocurrency consulting firm founded by Michaël van de Poppe in 2018, has discovered the best altcoins that can benefit from the disappearance of FTX. According to analysts, recent events promote a narrative strongly associated with decentralization.
Following the FTX news, leading hardware wallet makers Trezor and Ledger announced skyrocketing and record sales. This has also been accompanied by the trend of withdrawing massive amounts of Bitcoin (BTC) and ETH (ETH) from exchanges.
As Glassnode reported, Bitcoin investors withdrew a historic 106,000 BTC/month as a warning after FTX crashed. This only compares to three other times: April 2020, November 2020, and June-July 2022.
— glass node (@glassnode) November 13, 2022
Which Altcoins Can Benefit From FTX’s Collapse?
The altcoin market is often dominated by particular narratives or trends. For example, in recent months and years, “Ethereum killers” and layer 2 solutions for Ethereum have been strong trends that have provided investors with above-average profits.
According to Eight, the new trend of the next few months could be decentralization.
The fall of FTX promotes a narrative strongly tied to decentralization. Do you know which projects can benefit from this story? 🧵 pic.twitter.com/wQ4zVsh5EO
— Eight (@eight_global) November 17, 2022
In this sense, Eight’s top pick is GMX, a decentralized one-time and perpetual exchange that supports low swap fees and price-neutral trading.
As analysts note, the advantage of decentralized exchanges is that traders do not have to deposit their coins on an exchange and therefore are not exposed to the security risks of a centralized exchange.
The GMX token is ranked 87th among all cryptocurrencies and has seen a strong price increase of around 20% over the past seven days.
Along the same lines, the second recommendation, DYDX. The platform is also a decentralized exchange platform for cryptocurrency margin trading for assets such as BTC, ETH, SOL, DOT and more.
The DYDX token currently ranks 144th in terms of market capitalization and even shows a gain of around 30% in the last seven days.
Along with UNI, Eight lists another decentralized exchange token that is far from more of an insider tip. The decentralized exchange has been making headlines for the past few days as the daily trading volume of the ETH/USD pair on Uniswap was 500 million more than on Coinbase. Uniswap came in 2nd behind Binance.
Another interesting decentralized exchange is PancakeSwap, which is based on the BNB chain and aims to provide a faster and cheaper alternative to Ethereum. CAKE currently ranks 66th, but unlike the others, he has had a slight loss over the past seven days.
Finally, Eight not only recommends decentralized exchanges, but also decentralized wallets. More specifically, we are talking about the Trust Wallet and the SafePal app. The former acts as an intermediary, connecting different blockchains through the use of its nodes.
It has a robust mechanism for sending, receiving, and storing multiple cryptocurrencies, and currently supports over a thousand cryptocurrencies.
The TWT token was trading at $1.15 a week ago and has skyrocketed over the past week. At press time, TWT was trading at $2.14.
In conclusion, the analysts said:
These are just a few of the projects that represent alternatives to the trading and custody services offered by centralized exchanges that have seen an increase in user attention and adoption after the FTX bankruptcy. Therefore, we suggest you add them to your watchlist!