Exchange tokens benefit when centralized exchanges struggle with DeFi platforms


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New inflows from institutional and retail investors into the cryptocurrency market have resulted in bull market conditions for many top tokens, from blue chips like Bitcoin (BTC) and Ether (ETH) to newer DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked subsector of the market, but they performed exceptionally well in 2021 as an increase in trading volume results in a larger pool of fees to be levied when the exchange’s native token is used for settlement . Native Exchange tokens are also typically used as a base pair for funding new listings and token buybacks.

Here are three of the top performing stock market tokens in 2021 that continue to see upside potential as new investors flock to the market.

Similar to CryptoKitty users in 2017, the decentralized financial community has found that the main downside to increasing usage of the Ethereum network is high gas fees and long transaction times.

As a result, centralized exchanges and their associated native tokens have seen renewed interest as new features such as staking, income farming, and collateralization allow investors to benefit from holding their assets. These new offers also allow investors to participate in DeFi-like offers without worrying about inconsistent losses, and they get access to the latest coin lists.