According to information from CoinMarketCap, FTX Token (FTT) clearly caused the breakdown in pricing, which fell by nearly 92.33% in the last seven days to $1.78. The fall of the coin was eerily similar to that of Terra (LUNA), which lost a year's worth of earnings in just over a week after the algorithm stablecoin TerraUSD (UST) crashed earlier in May.
Before FTX filed for bankruptcy, sector investors began to lose faith in the company; this action sparked money withdrawals that caused the trading platform's liquidity crisis. FTT holders were forced to sell their coins on other exchanges as well after realizing the firm's grim destiny.
Performance of the Top 10 Coins for the Week
Each of the top ten digital currencies has had a mediocre performance so far this week. Bitcoin is currently being traded at $16,655.55, a 21.50% weekly decline. The price of bitcoin even fell to $15,682.69 during the course of the week, marking the lowest level in almost two years.
Ethereum (ETH) experienced a similar fate and fell 23.63% to $1,237.73 during the course of the week. With a 20.41% decline, Binance Coin (BNB) is currently trading at $278.36. Above the course of the week under consideration, XRP, Polygon (MATIC), Dogecoin (DOGE), and Cardano (ADA) all experienced drops of over 20%.
The ecosystem is still in jeopardy notwithstanding the bombardment that has been observed thus far, since the knock-on effects of the FTX collapse will undoubtedly become apparent in the following weeks. Investors must exercise caution up until the coast is deemed to be clear.
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