As most cryptocurrencies battle to contain losses triggered by the FTX exchange collapse, the Trust Wallet Token (TWT) continues to record gains in defiance of the general market sentiment.
Indeed, by press time on November 18, TWT was trading at $2.2, recording gains of almost 10% in the last 24 hours. At the same time, the native asset of the Trust crypto wallet has rallied by about 92% on the weekly chart, according to CoinMarketCap data.
TWT, which has received sustained attention in the wake of the FTX debacle, is also recording a spike in capital inflow. The token controlled a market capitalization of $950.47 million by press time, adding about $460.27 million in a week. The valuation topped $1.1 billion on November 14.
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Why TWT is rallying
The token is a direct beneficiary of the FTX exchange crisis, with most investors moving away from trading platforms. Notably, FTX, which ranked among the leading crypto exchanges at its peak, was hit with a liquidity crunch sending shockwaves into the market as traders on other exchanges opted to store their crypto holdings on external wallets.
This element was highlighted by on-chain data from the crypto analysis platform Glassnode, indicating that the FTX collapse has pushed investors to withdraw Bitcoin (BTC) from exchanges at a record rate of 106 BTC per month.
TWT whale accumulation
At the same time, with TWT still relatively affordable, the asset is witnessing increased whale accumulation. According to data by Santiment, TWT’s supply rate held by addresses with a balance of between 1,000 TWT and 10 million TWT spiked amid the altcoin’s ongoing uptrend.
Furthermore, interest in Trust Wallets was accelerated after Binance CEO Changpeng Zhao highlighted the importance of using self-custody wallets after the FTX saga.
In the long term, it will be of interest to monitor TWT’s performance considering most exchanges are publishing proof of reserves. Notably, the proof of reserves publication is meant to inspire confidence among traders to keep their assets on exchanges.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
