Solana (SOL), Serum (SRM) and the FTX Token (FTT) have been at the forefront of the crypto rally. Although all of these coins are tied to the FTX crypto exchange and suffered greatly when the company filed for bankruptcy, they were able to stage a massive reversal. These three coins top the cryptocurrencies with the most market gains right now, but why?
Serum, Solana and FTT take center stage
Over the past week, the majority of the crypto market has rallied, following in the footsteps of bitcoin which had reached levels not seen since before the FTX crash. This green movement would continue into the week but some cryptocurrencies would go further. Three cryptocurrencies in particular, namely Serum, FTT and Solana, all linked to the now bankrupt FTX exchange, saw significant gains.
Serum (SRM), of which FTX holds a relatively small amount compared to its other token holdings, had a phenomenal run last week. The cryptocurrency is one of the few assets that was able to register triple-digit gains during this period. SRM’s price has already risen over 179% in the past 7 days, pushing its price above $0.65 at one point, a return to pre-FTX crash levels. It is also one of the trending coins on Coinmarketcap.
The FTT token, the official token of FTX, follows in the footsteps of Serum. FTT had dropped below $1 after filing for bankruptcy, severely affecting its position in the crypto market. However, last week he established himself as one of the top performers. Its price rose over 170% to trade above $2.5.
FTT Token returns to pre-FTX collapse levels | Source: FTTBUSD on TradingView.com
Last but not least is Solana. Now, Solana’s story goes back a bit further than the others in this report, but she was great. SOL began to gain prominence following the popularity of the BONK coin. But he carried that performance into the mini bull run and has performed well ever since.
The price of SOL is up over 41% in the past week, much less than SRM and FTT. But it becomes even more impressive when you consider that SOL was trading below $10 less than a month ago and is currently sitting above $23 after peaking at $27.
What is driving these FTX-linked tokens?
At present, there is no obvious driver behind the recovery of these cryptocurrencies outside of the general bull run in the market. One thing that has given FTX more exposure, in general, is former FTX US CEO Brett Harrison, who took to Twitter to share his story about his time at the crypto exchange.
Although the overall tone of the post was negative, it didn’t really affect the performance of these coins. Serum is only seeing small losses of less than 2% in the last 24 hours since the post was released, while Solana is firmly in the green with gains of 3.41%. FTT registers the largest losses in the one-day period at -2.16%.
Whether these coins will continue to rally depends entirely on market movement. Since there is no single event that determines any of their prices, it only comes down to the general altcoin market which closely follows bitcoin during this time.
If there is a pullback in the price of bitcoin, one should also expect a pullback among these altcoins.