Centralized cryptocurrency exchanges (CEX) have grown in prominence in recent months as Coinbase’s NASDAQ listing on April 14 and the exchange’s recent announcement that it would generate $ 1.8 billion in revenue in the first quarter of 2021, get more and more exciting.
Even if decentralized finance (DeFi) and popular decentralized exchanges (DEX) like Uniswap (UNI) and PancakeSwap (CAKE) attracted investors, high transaction costs and low liquidity in separate blockchain networks mean that many crypto traders stick with CEXs to keep trading costs down lower the feeling of security they offer.
While Bitcoin, DeFi tokens, and a selection of Altcoins have attracted most of the media attention, exchange tokens have quietly made impressive gains over the past few months.
Four exchange tokens that have seen significant gains recently are Binance Coin (BNB), KuCoin Token (KCS), FTX Token (FTT), and WazirX (WRX).
BNB / USDT
Binance continues to be the dominant cryptocurrency exchange in this sector. That strength is reflected in the growth of its native BNB token, which has increased 875% since February 1, partly due to the rise of the Binance Smart Chain (BSC).
As the Ethereum (ETH) network continues to struggle with congestion and high transaction costs, BSC has taken advantage of the situation by offering low-cost fixed transactions that are paid for with BNB.
This additional level of functionality for BNB has significantly increased the demand for the token as it powers the Binance DeFi ecosystem and PancakeSwap DEX, which, according to Defi Llama, is the fourth largest DeFi platform.
Given the signs that trading volume in the cryptocurrency is increasing, there is a strong likelihood that the BNB will see another uptrend as the Binance ecosystem continues to expand and the Etheruem network continues to face scalability and high fees.
KCS / USDT
The KuCoin exchange was founded in 2017 and operates out of the Seychelles. Similar to BNB, KuCoin Token (KCS) volumes increased in early February as the bull market picked up pace.
Since February 1, the price of KCS has risen nearly 1,000% from a low of $ 1.17 to a high of $ 12.96 on April 8, the highest price since January 2018.
The exchange has benefited from DeFi’s growth by quickly listing popular and newly released tokens that would otherwise only be available at Uniswap and SushiSwap.
VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for KCS on April 3rd ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graph above, the VORTECS ™ Score for KCS started rising on April 2nd and peaked at 79 on April 3rd, approximately 34 hours before the price began to rise 90% over the next three days .
FTT / USDT
FTT is the native token for the FTX derivatives exchange, which was launched in May 2019 by Sam Bankman-Fried and Gary Wang.
The token received increased attention in 2021, partly due to its association with the decentralized exchange of serum (SRM).
Since trading at a low of $ 5.68 on Jan. 2, the price of FTT has risen 750% on April 8, to a new all-time high of $ 48.62. FTT got an extra boost on April 7th when FTX announced an official partnership with the National Miami Heat of the Basketball Association.
As the FTX ecosystem grows through the combination of derivatives, centralized and decentralized financing offers, the FTT token could experience further appreciation. The utility and integration of the token in FTX is very similar to that of BNB, leading some analysts to conclude that 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 that helped kick off the exchange by launching a $ 50 million Blockchain for India fund in March 2020.
Compared to other exchange tokens, WRX moved more slowly in 2021, and price movements for the token didn’t move until early April when the platform announced it was opening a decentralized NFT marketplace.
The trading volume and token price for WRX began to increase on March 29th as WRX traded around $ 0.50 and the subsequent announcement of the NFT market on April 4th resulted in a surge in activity that around the WRX price rose more than 1,200% to an all-time high of $ 6.65 on April 5th.
As activity increases across the cryptocurrency sector and stable coins worth billions of dollars are minted and deposited on exchanges, CEX tokens are well positioned to see further growth.
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