Tuesday, May 11, 2021

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


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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. 

Whilst decentralized finance (DeFi) and widespread decentralized exchanges (DEX) like Uniswap (UNI) and PancakeSwap (CAKE) attracted buyers, 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. 

Whereas Bitcoin, DeFi tokens and a number of altcoins have garnered a lot of the media’s consideration, change tokens have quietly amassed spectacular positive aspects over the previous few months.

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

4 change tokens which have seen vital positive aspects of late are Binance Coin (BNB), KuCoin Token (KCS), FTX Token (FTT) and WazirX (WRX).


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

BNB/USDT 4-hour chart. Supply: TradingView

Because 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 keeping with knowledge from Defi Llama.

Whole worth locked on PancakeSwap. Supply: 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 broaden and the Etheruem community continues to face difficulties with scalability and excessive charges.


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

KCS/USDT 4-hour chart. Supply: TradingView

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

The change has capitalized on the expansion of DeFi by rapidly itemizing widespread and newly launched tokens that will 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 worth rise.

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

VORTECS™ Rating (inexperienced) vs. KCS worth. Supply: Cointelegraph Markets Pro

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


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

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

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

FTT/USDT 4-hour chart. Supply: TradingView

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


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

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

Buying and selling quantity and token worth for WRX started to select up on March 29 when WRX traded round $0.50 and the following announcement of the NFT market on April 4 led to a surge in exercise that lifted WRX worth greater than 1,200% to an all-time excessive of $6.65 on April 5.

WRX/USDT 4-hour chart. Supply: 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. Each funding and buying and selling transfer includes danger, it is best to conduct your individual analysis when making a call.