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Why Is TWT Rallying by 10% Again? Here's Reason

Fri, 11/18/2022 - 14:24
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Arman Shirinyan
Thanks to developer's activity and surge of new users, TWT feels more than comfortable in bearish market
Why Is TWT Rallying by 10% Again? Here's Reason
Cover image via stock.adobe.com

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One of the most commonly used cryptocurrency wallets has surprised crypto investors with its price performance after the FTX blowout. However, not many investors are aware what is the exact reason behind such explosive performance with almost no growth factors.

If you look at the performance of TWT in the last eight days, you might assume that the cryptocurrency market is moving in an uptrend and bulls have a full control of the market. However, the market is not performing here.

TWT Chart
Source: TradingView

Six days ago, the beginning of the rally was marked: TWT entered a massive uptrend after a surge of new users. The token itself has no utility outside of Trust Wallet itself. The main use for it is the governance and in-app benefits that users receive.

The FTX situation has once again proven the old rule in the cryptocurrency industry: custodial cryptocurrency holding solutions are not safe and cannot guarantee the safety of your funds. After the implosion of the exchange, users started to massively withdraw their holdings to noncustodial hot and cold wallets.

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As the number of active users of Trust Wallet increased exponentially, it became clear that the Trust ecosystem would expand. Only a few days after the first rally, developers announced a release of a browser extension that potentially makes Trust more than a coin-holding solution and puts it in a league with MetaMask.

With the governance of Trust slowly coming into the hands of former FTX users who are used to handy decentralized and market solutions, TWT will most likely become something more than just a wallet.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.