FTX’s Collapse has worked in Favor of Trust Wallet Token triggering a 150% Rally

Trust Wallet

In the past six days, the trading price of Trust Wallet Token (TWT) has experienced a 150% surge. With a strong rally, TWT has managed to evade the downturn.

As a result of the downturn, the overall market valuation of the crypto market has dipped by $100 billion. Still, TWT has not shown signs of slowing down or experiencing a downturn and has continued ascending.

TWT Whales are on the Move

On November 15, the trading price of TWT hit an intraday high level. The report shows that the trading price of TWT went up to a high of $2.43.

The trading price of TWT successfully managed to establish a high trading benchmark of $2.75 per TWT. In the year 2022, the lowest trading price TWT has managed to hit is $0.40.

So far in the year 2022, TWT has proven to be one of the top performers. The year-to-date performance of TWT shows that its price has risen by 225%.

The reason behind TWT’s Price Surge

The report suggests that the trading price of the Trust Wallet Token rose just as the FTX collapse took place. As Sam Bankman-Fried’s exchange lost to the financial crisis, it had to file for bankruptcy.

With FTX going bankrupt, the investors were afraid that their funds on the exchanges would get halted or lost. Therefore, they started to withdraw their funds from the exchanges, sending them to self-custody solutions.

With the investors losing trust in exchanges, the investor started to move their funds out of the exchanges. Among the cryptocurrencies, Bitcoin was the asset that recorded the highest outflows.

The FTX investors were able to fully withdraw the BTC from the exchange wallets. The story was somewhat similar for ETH as the investors had reduced the ETH in FTX wallets from 611,000 to 2,800 only.

Changpeng Zhao Endorsed the Wallet

Changpeng Zhao, the Binance CEO also endorsed Trust Wallet, the parent company behind the Trust Wallet Token as a self-custody wallet.

After Zhao’s recommendation, the investors started to move their funds to a particular wallet. This in turn increased the utility of the TWT, which helped push its trading price higher.

The number of wallets holding between 1,000 TWT and 10 million TWT has also increased. It suggests that the accumulation by the whales has increased while many investors had their status changed to ‘whales’.

The trading volume for TWT has also increased at a significant rate. At the time of writing, the trading volume of TWT stands at a high of $593.25 million.

Just as the price of TWT started to surge, its trading volume was hovering at $279 million. The data suggests that the trading price of TWT is worth $2.28 and it is hovering within its overbought zone.

If TWT starts correcting itself, the investors could see it fall to a low of $1.535 in early 2023.