FTX Token (FTT) On-Chain Trading Signals

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Contributor, Benzinga
September 2, 2022

FTX Token (FTT) is the native cryptocurrency of the FTX exchange, one of the largest crypto trading platforms in the world. The token can be used in a variety of situations, ranging from paying transaction fees to collecting reward payouts. The token was released in 2019 but only picked up steam in 2021 when FTX began to take off as a company.

While FTX Token has seen gains in the past year or so, many are wondering where the price will head in the coming months and years. While traditional trading analysis, such as looking at volume and chart patterns can be effective, the blockchain allows all transactions to be public. This factor allows investors access to much more data than traditional tradable assets and brings about a whole new group of trading metrics. 

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FTX Token On-Chain Trading Signals Analysis

Holders Making Money at Current Prices

This metric is used to see what percentage of holders of the token are making money. It takes a look at the price each holder bought their tokens at and compares it to the current price. As of right now, only about 10% of FTT holders are in profit.

Many FTT holders are holding onto a loss, which could be for several reasons. These holders could firmly believe in the project, or they could have received FTT from the FTX exchange and not sold.

Concentration by Large Holders

Concentration by large holders is one of the most important trading signals for FTT and every other altcoin. Large holders, in the context of crypto, are described as whales – those with more than 1% of circulating tokens – and large investors – those with 0.1% to 1% of the circulating supply. Nearly all of the circulating FTX supply is owned by large holders.

While this can most likely be explained by the fact that the FTX founders probably saved a good amount of the tokens for themselves, it does have implications in terms of price. If these large holders ever decide to make moves with their tokens, it could have a huge impact on the price.

Price Correlation With Bitcoin

Bitcoin is one of the more stable cryptocurrencies. It is also the largest. Because of this, many use it as a point of comparison. If a token moves mostly with Bitcoin, then it can be deemed as a bit more stable.

In the case of FTT, it has a nearly 1-to-1 correlation with Bitcoin, which means that the token is fairly stable in the context of the current crypto market. It also means that if Bitcoin were to recover, then FTT has a solid chance of doing the same. 

Holder’s Composition by Time Held

Seeing how long holders have had their tokens can be a great way to measure the community behind the token. If investors truly believe in the project, then they probably will not sell. It can also be a good way to see the timeframe in which a token has become popular. 

For FTT, a majority of holders have had their tokens for between 1 and 12 months, which is most likely from the rise of FTX as a company in the past year or so. 

Transactions Greater Than $100,000

FTX is primarily held by large holders. These large holders impact its price, so large transactions should be noted. 

FTT has had just over $100 million in large transactions in the past week, which is small in comparison to the overall volume. However, if this number rises then there could be a reason to research a bit further.

Transaction Demographics

One interesting metric using the blockchain takes a look at the time at which transactions are taking place. Transactions between 10 a.m. and 10 p.m. UTC are considered western, whereas transactions between 10 p.m. and 10 a.m. UTC are considered eastern.

For FTT, transactions are split pretty evenly between the east and the west, showing the global presence of the token. This trading signal can be helpful in determining roughly what time of day the most price movement will likely happen.

Exchange Inflows and Outflows

Exchange inflows and outflows are extremely important trading signals for FTT. By measuring the amount of capital going in and out of exchanges, investors can get a glimpse into the overall sentiment for the token. In the past week, FTT has seen about $10 million going into exchanges, while about $12 million have gone out of exchanges. These numbers are close together, but they could still be used to explain the slight loss the token has taken this week.

Is Now a Good Time to Buy FTX Token?

When viewing the future of FTT from these unique trading signals, it is evident that large whales can have a huge impact on the price. They make up almost all of the tokens in circulation, but they are not executing a ton of transactions. If they start making moves, then the price could change drastically. 

How to Buy FTX Token?

If you are looking to buy FTT for yourself, the best places to buy it is are on FTX and Binance. To get started on the platforms, navigate to either website, create an account and verify it, connect your bank (or send another crypto to the exchange) and begin trading.

How Does FTX Token Fit Into the Bigger Picture?

FTX Token is one of many utility ERC20 tokens that powers an exchange. It faces strong competition from Uniswap (UNI) and even Binance Coin (BNB). However, if FTX can begin to attract more users and create new features to keep its users happy, demand for the token will probably increase. The future of FTX is largely dependent on the exchange itself, and the large whales holding the tokens. 

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About Caden Pok

Caden has been involved with cryptocurrency for several years, began trading and investing in crypto in 2018 and is highly experienced with DeFi technology. He took part in undergraduate research studying cryptoeconomics and is a member of Wolverine Blockchain, a group designed to educate students on cryptocurrencies and blockchain technology. Currently, he mines multiple coins and holds positions in Cardano and Ethereum.