Crypto

The Impact of FTX Collapse on Total Crypto Market Cap

11/20/2022
Bitcoin Ethereum News

The previous week of the crypto world was full of issues. It attracted the attention of most of the investors. The market responded to all recent ongoings with Bitcoin and other cryptocurrencies trading sideways, while some were a bit to the Green and others slightly in the Red.

The major collapse of crypto exchanges, like the most recent collapse of FTX, leaves Total Crypto Market Cap under $800B, that is close to the 2022 Low. Here the debacle involves that FTX has triggered a slide in cryptocurrency prices that wiped out some $183 Billion of value from digital assets this month.

Cryptocurrency, a fully decentralized, secure, digital currency whose creation is controlled by cryptography. These are not issued or regulated by a central bank, and its prices are purely based on supply and demand.

Crypto Market

According to data sourced by Tradingview, the total crypto market cap is 0.47% lower than yesterday, DeFi coins market cap has also decreased by 0.28%.

The recent wave of turmoil in digital-asset markets shaved almost $183 Billion from the industry market cap. The figure dropped to $736 Billion on Nov. 9, the lowest since January 2021.

Recent Crypto Market Updates

The World Economic Forum deletes the page that refers to FTX, as a partner. Additionally, the drop after FTX collapse sent prices for bitcoin and other cryptocurrencies into a rapid descent. Bitcoin (BTC), the largest cryptocurrency, fell around 22% during the seven days through Nov. 13, its worst weekly performance in the last five months.

And now Bitcoin comprises $319 Billion worth of the entire cryptocurrency market’s capitalization. At the peak of the bull market about a year ago, when bitcoin touched its all-time high around $69,000, its market value was north of $1 Trillion.

Moving towards the second most-traded cryptocurrency, Ethereum, $5.4 Billion of ETH has been withdrawn from exchanges in the recent seven days, as per the analysis by Nansen.

Approximately 1.1M ETH ($1.3B) has been withdrawn from the exchanges since Nov 12, 2022. And now ETH balances on exchanges are as follows:

  • Binance: 5.12M ETH ($6.1B)
  • Coinbase: 4.89M ETH ($5.9B)
  • Bitfinex: 2.68M ETH ($3.2B)
  • Kraken: 2.07M ETH ($2.5B)
  • Gemini: 1.55M ETH ($1.9B)

Furthermore, Cardano has launched a new product called Midnight. And after the announcement its market sentiments indicate an increase or maybe it was due to the fact that Cardano had very less exposure to FTX.

Ripple, a cryptocurrency firm, seems like it is interested in buying the assets of failed cryptocurrency exchange FTX. Its CEO, Brad Garlinghouse, would be willing to buy those parts of the exchange that served business customers.

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Source: https://www.thecoinrepublic.com/2022/11/20/the-impact-of-ftx-collapse-on-total-crypto-market-cap/