The crypto markets witnessed huge mainstream interest during the 2017-18 bull run, followed by 2020-21, and look primed to grab attention from the mainstream audience once again in the coming months.
Traditionally Bullish Time of Year
A major reason to be bullish during the upcoming few months is the fact that capital has been pouring into the crypto industry unlike ever before.
Moreover, crypto regulations around the world are a lot clearer today than they were a year ago which has given enough confidence to the institutional investors to dip their feet in the crypto economy.
However, while everyone is doing their research to find the next gem in the unending sea of cryptocurrencies, a wiser approach to benefit from a bull market is to purchase exchange tokens.
The approach of buying exchange tokens during a full-blown bull market is the crypto equivalent of selling shovels during a gold rush.
There is a strong argument that can be made to strengthen the narrative of exchange tokens gaining momentum during times of euphoria in the crypto market as an increasing number of users flock to crypto exchanges to trade their desired crypto assets.
As exchange volume rises, so does the value of its token as there are several benefits to trading on an exchange while owning its token such as taking advantage of trade rebates, allocation in new projects launching on the exchange, staking benefits, and a lot more.
In this article, we will explore three such exchange tokens that can benefit significantly from rising crypto trading volume in the coming month or so.
Binance Coin (BNB)
Perhaps the trailblazer in the exchange token category, Binance crypto exchange’s Binance Coin (BNB) comes with a whole host of utilities and benefits that can propel the coin to a new all-time high in the coming months.
For the uninitiated, BNB is the exchange token of Binance, the largest cryptocurrency exchange platform in the world by reported trading volume. However, unlike other exchange tokens, BNB also functions as the gas for the Binance Smart Chain ecosystem.
In addition, BNB can be used for trading on Binance which allows the traders to enjoy a 25% discount on their trading fees compared to USDT or bitcoin (BTC). Further, holding BNB also makes the holder eligible for Binance-based initial exchange offerings (IEOs) that have, historically, gone on to perform extremely well.
As icing on the cake, BNB is also a deflationary asset as every quarter Binance market buys and burns BNB tokens worth 20% of its profits. This mechanism essentially eliminates the active circulating supply of BNB from the open market, which, in turn, leads to upward price pressure on the digital asset.
At the time of writing, BNB is trading at $582 with a market cap of $97 billion, as seen on CoinGecko.
FTX Exchange Token (FTT)
Just like Binance’s BNB token, Bahamas-based cryptocurrency derivatives exchange FTX has its token, FTT.
FTT offers several exchange-related benefits to its holders. However, it does not have the utility to be paid as gas in any ecosystem, unlike BNB.
According to FTX’s official website, FTT is the backbone of the wider FTX ecosystem, and it is hard to argue otherwise. Holding FTT makes the holder eligible for certain fee rebates while trading on FTX. For instance, holding $100 worth of FTT will offer a 3% discount on FTX Trading Fees, $1000 worth of FTT offers a 5% discount, and so on.
In addition, staking FTT tokens on the exchange gives a whole different set of benefits to FTX users. For instance, FTT stakers get maker fee rebates, have a chance to win free swag NFTs, increase their chance of getting Serum (SRM) airdrops, and bag IEO tickets for projects raising funds on FTX.
Besides, just like BNB, FTT also has its buy and burn mechanism where 33% of the trading fees generated on FTX markets are used to market buy and burn FTT. Notably, the latest buy and burn transaction led to the burn of $7.36 million worth of FTT.
At the time of writing, FTT trades at $49.74 with a market cap of more than $6.9 billion, as seen on CoinGecko.
Huobi Token (HT)
The last in our list of exchange tokens to keep in mind, Huobi Token (HT) is the native cryptocurrency of Huobi Global exchange, a leading cryptocurrency exchange that settles billions of dollars worth of crypto transactions every day.
Huobi Token follows BNB and FTT in that it has a monthly buy and burn mechanism where the exchange allocates 20% of its revenues every month to market buy and burn HT from open markets.
Holding HT on the Huobi exchange ensures the holder gets a 65% discount in trading fees. Users can also stake their HT tokens on the exchange to participate in Huobi PrimePool which is the exchange’s launchpad for new projects looking to raise capital.
Moreover, HT also functions as gas and allows its holders to earn interest on the token if they stake it on Huobi’s DeFi ecosystem, the Huobi ECO (HECO) Chain.
For the uninitiated, the HECO Chain is a budding ecosystem for DeFi applications that allows users to participate in yield farming, staking functions, debit and credit capabilities, lending projects, and others at low gas fees.
At the time of writing, HT trades at $9.84 with a market cap of more than $1.5 billion, as seen on CoinGecko.