XRP and Solana Show Strength, Crypto Market Falls: Following Concerns Over FTX Sell-Off

As crypto markets fall, XRP and Solana have emerged as somewhat beacons of resilience. Despite the gloom cast by the recent downturn, these altcoins have been showcasing signs of a potential comeback.

Bankruptcy Woes: FTX’s Green Light to Liquidate

The U.S. Bankruptcy Court for the District of Delaware gave FTX the nod to tap into its cryptocurrency assets, aimed at repaying the anxious creditors. This decision overruled two objections that stood in the way of the exchange’s plan to utilize its crypto holdings, valued at a staggering $3.4 billion.

Solana’s Unexpected Jump Amid FTX’s Holdings

One might expect Solana (SOL) to feel the heat, given that FTX reported holding a whopping $1.16 billion of this token, which equates to nearly 16% of SOL’s total supply. However, going against the tide, Solana registered a promising 3.10% surge in its value. This spike is particularly noteworthy, considering the fact that most of the leading cryptocurrencies are currently in the red on daily charts.

XRP Joins the Rebound Rally

XRP, never one to be left behind, has also started making small waves. Over the last day, it saw an encouraging uptick of 0.68%. This might seem modest, but in the current climate, where the total crypto market cap plummeted by 42%—dropping to $600 billion from its earlier majestic figure of over $1 trillion—it’s a feat worth mentioning.

Regardless though, FTX’s vault isn’t restricted to just Solana. The exchange also holds assets worth about $560 million in Bitcoin. But that’s not the end of the story. Their portfolio is diversified further with several other irrelevant tokens, although these remain relatively illiquid.

As the crypto market grapples with recent challenges, it’s a bit heartening to witness altcoins like XRP and Solana pave the way for a potential rebound. Only time will tell if this upward trajectory continues or if it’s just a temporary glimmer of hope.