• 22 June, 2024
Market News

FTT Is up More Than 120% Since the Start of 2023; What Does the Data Tell Us?

Today, there are only six active FTT markets, down from a high of more than 28 prior to its launch. 80 percent of FTT liquidity is concentrated on Binance’s FTT-BUSD pair. Despite this, the market depth for the FTT-BUSD pair has remained mostly flat hovering around 100k FTT since its launch. 

The bid and ask side of the pair’s order book has been mostly balanced, aside from a bid-side surge yesterday.

Source: Kaiko

This suggests that despite the price surge, there are still market makers actively trading FTT tokens. Market makers play an important role in maintaining liquidity in smaller markets by taking on both sides of trades to ensure that orders can quickly be filled. Their presence is a sign of market health and stability, allowing traders to enter and exit the market with ease.

On the price-taker side, trade volume is very low apart from a few spikes into the 8-10 million range. Low liquidity has likely made it easier for FTT’s price to surge by a few opportunistic buyers, which then draws in traders trying to offload their FTT. This can lead to significant volatility in the price of FTT, so traders should be wary and exercise caution when trading the token. 

Interestingly, large buy-and-sell trades are pretty evenly balanced. It’s unclear who is behind these large trades, but this suggests that there are still traders looking to capitalize on the volatility in FTT’s price. 

Source: Tradingview

It is for these traders that FTT may provide an interesting opportunity. Though it is still a very young market, there are signs of life in the FTT ecosystem. Stable liquidity, balanced order books, and consistent trading volume all point to a real demand for the token. It will be interesting to see how the FTT market evolves.

The combination of low trade volume and market-making activity indicates that FTT may be a risky, but potentially lucrative investment for the right trader. Traders should carefully watch FTT’s order book and price movements to maximize their returns while minimizing risk. 

It’s important to remember that cryptocurrency markets are extremely volatile, so make sure to exercise caution when trading FTT. With the right strategies in place, however, traders could find themselves profiting from the mysteries of the FTT zombie-coin.

Conclusion

FTT is a market that has experienced an impressive price surge. There are signs of life in the FTT ecosystem, with stable liquidity, balanced order books, and consistent trading volumes all pointing to a real demand for the token. Though it is still a very young market and carries significant risks, there could be potential rewards for shrewd traders willing to research the coin and make informed trading decisions.

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