Native exchange tokens have exploded in value in recent months, alongside the wider cryptocurrency markets, changing the narrative for what these tokens were originally meant for.
Bitcoin (BTC), Ether (ETH) and other cryptocurrencies have seen exponential growth over the past six months. In part, this is due to major institutional investors finally entering the markets in a meaningful way. Grayscale Investments, MicroStrategy and Tesla have been some of the biggest names to make major acquisitions of Bitcoin and other cryptocurrencies, leading to new all-time highs in values.
This has had a knock-on effect for various tokens that either power cryptocurrency exchanges, or — like Ethereum’s gas charges for processing transactions — act as the fuel for the underlying blockchain.
Exchanges that use their own tokens to power their ecosystems have also seen their native cryptocurrencies boom in value. Two prime examples of this are Binance’s native Binance Coin (BNB) token and decentralized finance platform Uniswap’s UNI token and OKEx exchange token, the OKB.
BNB saw a rise in value from $38 per token on Jan. 1 to an all-time high of $335 on Feb. 19. Likewise, UNI Title: Rise of the exchange token: From utility coin to long-term investment?
Sourced From: cointelegraph.com/news/rise-of-the-exchange-token-from-utility-coin-to-long-term-investment
Published Date: Sat, 27 Mar 2021 12:44:00 +0000
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