The emergence of decentralized finance (DeFi) has reshaped the landscape of the cryptocurrency ecosystem, which was once dominated by centralized exchanges like Coinbase and Binance, and helped make it more accessible to users and projects seeking to access markets.
As DeFi became a cheaper and more accessible option for investors and projects, centralized exchanges saw their BTC and Ether reserves drop and they began to compete for users as a growing number of investors have chosen to try DeFi.
Instead of taking a “centralized only” approach, the LCX exchange has adapted its model to offer centralized and decentralized services and meanwhile its native LCX token has set a new record.
Data from CoinGecko shows that since hitting a low of $ 0.034 on August 21, the price of LCX has exploded 430% to a daily high of $ 0.1775 on September 18, as its trading volume on 24-hour basis soared 700% from an average of less than $ 1 million to $ 7.6 million.
Three reasons for the LCX price increase include the release of the LCX DeFi terminal, the increase in transaction volume and Total Locked-in Value (TVL) on Uniswap, and the expansion of the LCX exchange ecosystem.
LCX swivels to DeFi
September 17, LCX published an update to the DeFi Terminal 2.0 protocol, also known as the Fire Salamander DEX aggregator.
According to LCX, the update aims to improve the user experience and the upgrade improves gas efficiency and incorporates six new decentralized exchanges into the interface.
New DEXs added include Shibaswap, Swipeswap, Luaswap, Youswap, Polyient Dex, and Emiswap, bringing the total number of built-in DEXs to thirteen.
Trade volume and increase in TVL
A second reason for the LCX price spike has been the increase in trading activity and the liquidity available for the token on Uniswap.
As the chart above shows, the surge in prices seen for LCX corresponds to an increase in 24-hour trading volume on Uniswap.
As of September 21, the total value blocked in LCX liquidity pools on Uniswap was $ 3.15 million, an increase of 267% from its TVL of $ 1.18 million on August 21.
Ecosystem expansion, exchange lists and governance features
Another reason for the gains seen in LCX includes the expansion of the LCX ecosystem and the upcoming launch of governance features.
Over the past few months, the LCX exchange has added popular altcoins to its list of offerings, including Cardano (ADA), Polkadot (DOT), Hedera Hashgraph (HBAR), and Polygon (MATIC).
At the same time, LCX founder Monte Metzger hosted a series of podcast interviews with project managers.
These interviews introduced the communities behind these tokens to the LCX ecosystem and helped explain ongoing collaborations such as the partnership between LCX and Polkadot to develop its security token standard using Polkadot’s parachain technology.
Learn more – https://t.co/OHDbLs7sH2 pic.twitter.com/pSj36dMQlI
– LCX (@lcx) September 2, 2021
This brought a new level of exposure to the LCX project and highlighted the fact that the exchange is fully licensed and will provide users with a law-compliant means to access Security Token Offerings (STOs). There are also plans to roll out a governance token for the LCX DEX, which fits the popular trend of DeFi exchanges rewarding early players with governance tokens.
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