FTT, the native token of the FTX cryptocurrency exchange and one of the top 25 largest cryptocurrencies in the world, was a horse of a different colour up until June.
FTT’s investors were significantly affected by the uncertainty surrounding the market, which resulted in one of the biggest selling spikes seen this year.
While one of the top cryptocurrency exchanges backs the asset, due to the broader market cues, investors remain hesitant to invest in FTT. In fact, since the start of the year, FTT investors have begun selling off their holdings.
In any case, over 45.47 million FTT tokens have been returned to exchanges since January. This adds up to around £1.3 billion in total.
After June 13, when investors returned 31.87 million FTT tokens, the largest sell-off—worth more than £719 million—was recorded.
Given that FTT has been among the poorest performers for more than a month at this point, the investors’ actions seem no surprise.
The token tried to recover after falling by 56.57% between March and June. However, it was only able to recover 20.84% of its June lows. And if that was not enough, the token may soon experience another downtrend.
It appears that FTT holders have made up their mind to remain entirely silent and take no action at all this time.
FTT’s on-chain velocity has dramatically decreased. This shows that the rate of token exchange has been slowing down.
Additionally, investors are avoiding using the network for transactions. This is due to the fact that, after almost two months, the biggest amount of loss-bearing transactions was recorded on July 26 by FTT.
FTT tokens worth £18.3 million traded for less than what they were purchased for in a single day.
The holders of the token will play a major role if it ever decides to make a comeback.