Why Are Exchange Tokens Pumping While Altcoins Stay Stagnant?
OKB and KuCoin Shares are among the biggest 24-hour risers.
Covered:
- Exchange Tokens Popping While Other Altcoins Sag
- Is Bitcoin Mania Driving The Rise In Exchange Tokens?
Exchange Tokens Popping While Other Altcoins Sag
Exchange tokens appear to be the biggest beneficiary of the ProShares ETF debut on the NYSE, with OKEx’s and KuCoin’s tokens doing best among the top 100.
In particular, OKB is up nearly 20% in the last 24 hours. OKEx’s exchange coin is currently trading in the $19 dollar range. It’s the biggest gainer among top 100 cryptocurrencies in the last 24 hours.
OKB coin 90-day chart. Credit: CoinGecko.com
OKB is up considerably from its 90 day low on Sept 26th, when it hit as low as 9.71. That’s a 100% gain from those late September levels.
OKB’s struggles coincided with Seychelles-based exchanges decision to remove itself from the Chinese market. OKEx’s exchange coin was one of the hardest hit cryptocurrencies because of the exchanges roots in China.
Despite it’s very strong recent showing, OKB is still down from its May 4th all-time high of $44 USD.
Meanwhile, KuCoin’s KCS is up almost 10 percent in the last 24 hours. KCS is trading in the $14 range. The exchange coin was hit hard by China as well falling to the 9 dollar level on September 26th, just like OKB.
Recommended: Binance To Go Public: What Does That Mean For BNB?
Other exchange coins aren’t doing as well. Binance Coin (BNB) and FTX (FTT) are both up only 2% the last 24 hours. BNB is trading in the $486 range, while FTT is around $46 USD. However, both exchange coins are faring better than Bitcoin (0.5%), Ethereum (0.75%), and Cardano (-0.5%).
Not to mention, BNB just regained 3rd place in market cap from Cardano.
Is Bitcoin Mania Driving The Rise In Exchange Tokens?
Recommended: The Ultimate Guide On How To Use KuCoin
Exchange tokens don’t all operate the same way, but the goal is always the same: drive and retain customers. Whether it’s KCS and its profit sharing model, or BNB and its application to the Binance Smart Chain, all of them create reasons to hold the coin and keep using the exchange.
But when the market falls so do exchange tokens. Makes sense. When people are taking profits there isn’t much incentive to keep a coin that gives you discounts that you don’t need — especially if cashing out into fiat.
It also makes sense then why BNB is still 30% below its May 10th all-time high of $690 USD. It’s highest price was during the first top of this bull run.
But the fact that prices are ticking up is a very positive sign. Generally, exchange tokens are bought on exchanges, meaning money is flowing back onto exchanges.
The post Why Are Exchange Tokens Pumping While Altcoins Stay Stagnant? appeared first on CryptosRus.
Text source: CryptosRus
