Eight, a cryptocurrency consultancy founded by Michaël van de Poppe in 2018, has uncovered the best altcoins that can benefit from FTX’s demise. According to analysts, recent events are promoting a narrative that is strongly associated with decentralization.
Following the FTX news, leading hardware wallet manufacturer Trezor and Ledger reported skyrocketing and record-breaking sales. This was also accompanied by the trend of massive amounts of Bitcoin (BTC) and ETH (ETH) being withdrawn from exchanges.
As Glassnode reported, Bitcoin investors have withdrawn a historic 106,000 BTC/month to self-custody following the collapse of FTX. This only compares to only three other times: April 2020, November 2020, and June-July 2022.
Following the collapse of FTX, #Bitcoin investors have been withdrawing coins to self-custody at a historic rate of 106k $BTC/month.
This compares with only three other times:– Apr 2020– Nov 2020– June-July 2022https://t.co/92aYVYU4Yt pic.twitter.com/em7CsDBWUf
— glassnode (@glassnode) November 13, 2022
Which Altcoins May Benefit From FTX Collapse?
The altcoin market is often dominated by narratives or special trends. For example, in recent months and years, “Ethereum killers” and layer 2 solutions for Ethereum have been strong trends that have given investors above-average profits.
According to Eight, the new trend for the next few months could be decentralization.
The downfall of FTX promotes a narrative strongly connected to decentralization. Do you know which projects can benefit from this narrative ? pic.twitter.com/wQ4zVsh5EO
— Eight (@eight_global) November 17, 2022
In that sense, Eight’s first pick is GMX, a decentralized spot and perpetual exchange that supports low swap fees and trading without price impact.
As the analysts note, the advantage of decentralized exchanges is that traders do not have to deposit their coins on an exchange and are therefore not exposed to the security risks of a centralized exchange.
The GMX token is ranked 87th among all cryptocurrencies and has recorded a strong price increase of about 20% over the last seven days.
In a similar vein is the second recommendation, DYDX. The platform is also a decentralized exchange platform for cryptocurrency margin trading for assets such as BTC, ETH, SOL, DOT and more.
The DYDX token currently ranks 144th by market cap and is even posting a gain of about 30% over the past seven days.
With UNI, Eight lists another decentralized exchange token that it is far from being an insider’s tip anymore. The decentralized exchange made headlines in recent days as the daily trading volume of the ETH/USD pair on Uniswap was 500 million higher than on Coinbase. Uniswap came in 2nd behind Binance.
Another interesting decentralized exchange is PancakeSwap, which is based on the BNB chain and aims to provide a faster and cheaper alternative to Ethereum. CAKE currently ranks 66th, but unlike the others, it has recorded a slight loss over the last seven days.
Lastly, Eight recommends not only decentralized exchanges, but also decentralized wallets. Specifically, we are talking about the Trust Wallet and the SafePal app. The former acts as an intermediary, connecting different blockchains through the use of its nodes.
It has a robust mechanism for sending, receiving and storing multiple cryptocurrencies, and currently supports over a thousand crypto coins.
The TWT token was trading at $1.15 a week ago and has skyrocketed over the past week. At press time, TWT was trading at $2.14.
In conclusion, the analysts said:
These are just some of the projects that represent alternatives to trading and custody services offered by centralized exchanges and witnessed increased rate of attention and user adoption after the bankruptcy of FTX. Therefore, we suggest that you add them on your watchlist!