Exchange tokens rally ahead of Coinbase’s long-awaited IPO next week

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Centralized cryptocurrency exchanges (CEX) have garnered increased attention over the past two months, as enthusiasm mounts around Coinbase’s NASDAQ listing on April 14 and the exchange’s recent announcement according to which it generated $ 1.8 billion in revenue in the first quarter of 2021.

Even though decentralized finance (DeFi) and popular decentralized exchanges (DEX) like Uniswap (UNI) and PancakeSwap (CAKE) have attracted investors, high transaction costs and low liquidity on separate blockchain networks mean that many crypto traders stick with CEXs to reduce trading costs and the sense of security they offer.

While Bitcoin, DeFi tokens, and a selection of altcoins have garnered most of the media attention, exchange tokens have quietly amassed impressive gains in recent months.

KCS / USDT vs BNB / USDT vs WRX / USDT 1 Day Chart. Source: TradingView

Four exchange tokens that have seen big gains in recent times are Binance Coin (BNB), KuCoin Token (KCS), FTX Token (FTT) and WazirX (WRX).

BNB / USDT

Binance continues to be the most dominant cryptocurrency exchange in the industry and this strength has been reflected in the growth of its native BNB token which has climbed 875% since February 1 in part due to the surge in power of the Binance Smart Chain (BSC).

BNB / USDT 4 hour chart. Source: TradingView

As the Ethereum (ETH) network continues to battle congestion and high transaction costs, BSC has emerged to capitalize on the situation by offering low cost fixed transactions that are paid for with BNB.

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This extra layer of functionality for BNB has dramatically increased demand for the token as it powers the Binance DeFi and PancakeSwap DEX ecosystem which is now the fourth largest DeFi platform in total value locked according to data from Defi Llama.

Total value locked to PancakeSwap. Source: Defi Llama

With signs that cryptocurrency trading volumes are on the rise, there is a strong possibility that BNB will experience more benefits as the Binance ecosystem continues to grow and the Etheruem network continues to contend. to scalability difficulties and high costs.

KCS / USDT

The KuCoin exchange was established in 2017 and operates from Seychelles. Similar to BNB, KuCoin Token (KCS) volumes started to rise in early February as the bull market started to gain momentum.

4 hour KCS / USDT chart. Source: TradingView

Since February 1, the price of KCS has increased by nearly 1,000%, from a low of $ 1.17 to a high of $ 12.96 on April 8, its highest price since January 2018.

The exchange capitalized on DeFi’s growth by quickly listing popular and newly released tokens that would otherwise only be available on Uniswap and SushiSwap.

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TBEN Markets Pro’s VORTECS ™ data began to detect a bullish outlook for KCS on April 3, ahead of the recent price hike.

The VORTECS ™ Score, exclusive to TBEN, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and Twitter activity .

VORTECS ™ score (green) against the KCS price. Source: TBEN Markets Pro

As shown in the graph above, the VORTECS ™ score for KCS began to climb on April 2 and peaked at 79 on April 3, about 34 hours before the price began to rise 90% over the course of the years. next three days.

FTT / USDT

FTT is the native token of the FTX derivatives exchange which was launched in May 2019 by Sam Bankman-Fried and Gary Wang.

The token received increased attention in 2021 in part due to its association with Decentralized Serum Exchange (SRM).

Since trading at a low of $ 5.68 on January 2, the price of FTT has skyrocketed 750% to a new all-time high of $ 48.62 on April 8. FTT received an additional boost on April 7 when FTX ad an official partnership with the Miami Heat of the National Basketball Association.

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4 hour FTT / USDT chart. Source: TradingView

As the FTX ecosystem grows by combining derivatives, centralized and decentralized financial offerings, the FTT token could see further appreciation. The utility and integration of the token with FTX is quite similar to that of BNB, leading some analysts to suggest that the FTT is undervalued.

WRX / USDT

WazirX is an India-based cryptocurrency exchange that claims to be the fastest growing cryptocurrency exchange in the country. The project is part of the Binance ecosystem, which helped kick-start the exchange with the launch of a $ 50 million “ Blockchain for India ” fund in March 2020.

Compared to other exchange tokens, WRX was a slower engine in 2021, and the price action for the token didn’t really budge until early April, when the platform revealed that it would launch a decentralized NFT market.

The trading volume and token price for WRX started increasing on March 29 when WRX traded around $ 0.50 and the subsequent announcement from the NFT market on April 4 led to increased activity. which took WRX’s price over 1200% to an all-time high. from $ 6.65 on April 5.

WRX / USDT 4 hour chart. Source: TradingView

As activity in the cryptocurrency industry increases and billions of dollars in stablecoins are minted and deposited on the exchanges, CEX tokens are well positioned to see further growth.

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research when making a decision.