The most recent FTT price surge followed similar upward rises in other exchange assets.
On Monday, the FTX crypto exchange’s native utility token, FTT, reached a new high, a week after the business agreed to buy LedgerX, a crypto derivatives platform based in the United States, for an undisclosed sum.
The FTT/USD exchange number grew 16.37 percent to $73.99, on Monday, as a part of a market-wide spike in which other major coins had similar but smaller price rises. On a 24-hour adjusted period, the pair’s intraday rise coincided with advances among prominent exchange tokens, with Binance Coin (BNB) climbing 2.3 per cent and Uniswap’s UNI gaining 3.5 per cent.
The acquisition of Ledger by FTX provided the key bullish backdrop for FTT’s surge.
On Aug. 31, the crypto exchange said that its regional wing, FTX.US, plans to offer a wide range of crypto-based asset classes in the United States. As a result, the acquisition of LedgerX, a regulated crypto derivatives exchange and clearinghouse for individual and institutional investors in the United States, will give FTX services a greater market reach.
In response to the LedgerX news on Wednesday, FTT soared 34.42 per cent. The cryptocurrency then went through a period of consolidation before resuming its upward trajectory on Monday, climbing to 16.37 per cent. The company’s month-to-date gains totaled a little more than 50%.
On the FTX market, FTT holders can save money on trading fees and receive rebates over the counter. Token holders can also use FTT as collateral for futures contracts. FTX’s OTC gateway and futures market can be purchased by institutions using FTT.
FTT’s Network Expansion and FTT’s Value
As a result, FTX’s network expansion tends to be inversely proportional to FTT’s price performance. The link was evident in the recent surge, as the FTX exchange’s Bitcoin Futures Open Interest returned to $2.96 billion on Monday. The OI achieved a high of $3.02 billion on April 13, 2021.
Furthermore, FTX’s Bitcoin OI rebounded faster than any other crypto derivatives exchange, reaching new highs. According to data given by Bybt, Binance’s Bitcoin OI reached $4.83 billion, with a high of $5.27 billion.
FTT has entered a price discovery process as a result of its recent bull run.
After peaking at $73.99 on Monday, the FTT/USD rate fell 6%, indicating profit-taking among day traders.
Now, the pair is aiming for a bullish breakout by sustaining support near $61.03 and retesting its current all-time high. If that happens, the next resistance target will be around $85.
Meanwhile, if the sell-off continues, FTT/USD might drop below $52.48, which is nearing to the 20-day exponential moving average.