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


Centralized cryptocurrency exchanges (CEX) have acquired elevated consideration over the previous couple of months as pleasure builds over Coinbase’s April 14 NASDAQ itemizing and the change’s latest announcement that it pulled in $1.8 billion in revenue in the course of the first quarter of 2021. 

Even as decentralized finance (DeFi) and standard decentralized exchanges (DEX) like Uniswap (UNI) and PancakeSwap (CAKE) attracted traders, excessive transaction prices and low liquidity on separate blockchain networks signifies that many crypto merchants stick to CEXs for decrease buying and selling prices and the sense of safety they provide. 

While Bitcoin, DeFi tokens and a variety of altcoins have garnered most of the media’s consideration, change tokens have quietly amassed spectacular features over the previous few months.

KCS/USDT vs. BNB/USDT vs. WRX/USDT 1-day chart. Source: TradingView

Four change tokens which have seen important features of late are Binance Coin (BNB), KuCoin Token (KCS), FTX Token (FTT) and WazirX (WRX).

BNB/USDT

Binance continues to be essentially the most dominant cryptocurrency change within the sector and that power has been mirrored within the progress of its native BNB token which has climbed 875% since Feb. 1 due partially to the rise of the Binance Smart Chain (BSC).

BNB/USDT 4-hour chart. Source: TradingView

As the Ethereum (ETH) community continues to battle with congestion and excessive transaction prices, BSC emerged to capitalize on the scenario by providing low-cost fastened transactions which might be paid with BNB.

This added layer of performance for BNB has considerably elevated demand for the token because it powers the Binance DeFi ecosystem and PancakeSwap DEX which is now the fourth-largest DeFi platform by whole worth locked in accordance with knowledge from Defi Llama.

Total worth locked on PancakeSwap. Source: Defi Llama

With indicators that buying and selling volumes throughout the cryptocurrency are on the rise, there’s a sturdy chance that BNB will see additional upside because the Binance ecosystem continues to develop and the Etheruem community continues to face difficulties with scalability and excessive charges.

KCS/USDT

KuCoin change was established in 2017 and operates out of the Seychelles. Similar to BNB, volumes for KuCoin Token (KCS) started to choose up in early February because the bull market started to assemble steam.

KCS/USDT 4-hour chart. Source: TradingView

Since Feb. 1, the value of KCS has elevated almost 1,000% from a low of $1.17 to a excessive of $12.96 on April 8, its highest value since January 2018.

The change has capitalized on the expansion of DeFi by rapidly itemizing standard and newly launched tokens that might in any other case solely be accessible on Uniswap and SushiSwap.

VORTECS™ knowledge from Cointelegraph Markets Pro started to detect a bullish outlook for KCS on April 3, previous to the latest value rise.

The VORTECS™ Score, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of knowledge factors together with market sentiment, buying and selling quantity, latest value actions and Twitter exercise.

VORTECS™ Score (inexperienced) vs. KCS value. Source: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Score for KCS started to climb on April 2 and reached a excessive of 79 on April 3, roughly 34 hours earlier than the value started to rise 90% over the next three days.

FTT/USDT

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

The token has acquired elevated consideration in 2021 partly as a result of its affiliation with the Serum (SRM) decentralized change.

Since buying and selling at a low of $5.68 on Jan. 2, the value of FTT has skyrocketed 750% to a brand new all-time excessive of $48.62 on April 8. FTT acquired an added enhance on April 7 when FTX announced an official partnership with the National Basketball Association’s Miami Heat.

FTT/USDT 4-hour chart. Source: TradingView

As the FTX ecosystem grows by combining derivatives, centralized and decentralized finance choices, FTT token may see additional appreciation. The token’s utility and integration to FTX is sort of just like that of BNB, main some analysts to counsel that FTT is undervalued. 

WRX/USDT

WazirX is a cryptocurrency change based mostly in India that claims to be the fastest-growing crypto change within the nation. The challenge is a component of the Binance ecosystem, which helped begin the change throughthe launch of a $50 million ‘Blockchain for India’ fund in March 2020.

Compared to different change tokens, WRX has been a slower mover in 2021 and value motion for the token didn’t actually get transferring till early April when the platform revealed that it will launch a decentralized NFT marketplace.

Trading quantity and token value for WRX started to choose up on March 29 when WRX traded round $0.50 and the next announcement of the NFT market on April Four led to a surge in exercise that lifted WRX value greater than 1,200% to an all-time excessive of $6.65 on April 5.

WRX/USDT 4-hour chart. Source: TradingView

As exercise throughout the cryptocurrency sector will increase and billions of {dollars} value in stablecoins are minted and deposited on exchanges, CEX tokens are well-positioned to see additional progress.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer entails threat, you must conduct your individual analysis when making a call.