Central cryptocurrency exchanges (CEXs) have gained increased attention in the past few months as tensions escalate after Coinbase was listed on the Nasdaq on April 14 and the exchange recently announced a profit of $ 1.8 billion in the first quarter of 2021.
While decentralized finance (DeFi) and popular decentralized exchanges (DEX) such as Uniswap (UNI) and PancakeSwap (CAKE) have attracted investors, the high transaction costs and low liquidity on some blockchain networks mean that many cryptocurrency traders stick to CEX to reduce costs. Circulation. And the feeling of safety they give.
While Bitcoin, DeFi and a number of altcoins have garnered the most media attention, the exchange’s tokens have quietly made stunning profits in recent months.
KCS / USDT vs BNB / USDT vs WRX / USDT 1 day chart. Source: TradingView
Four exchange tokens that showed significant gains too late: Binance Coin (BNB), KuCoin Token (KCS), FTX Token (FTT), and WazirX (WRX).
BNB / USDT
Binance remains the sector’s most popular cryptocurrency exchange, and its strength is reflected in the growth of the original BNB token, which has grown by 875% since February 1, partly due to the increase in Binance Smart Chain (BSC).
4 hour BNB / USDT chart. Source: TradingView
As the Ethereum (ETH) network continues to face congestion and rising transaction costs, BSC has emerged to take advantage of the position by offering low-cost transactions that are paid for through BNB.
This BNB add-on has significantly increased the demand for token as it works on the Binance DeFi ecosystem and PancakeSwap DEX, which is currently the fourth largest DeFi platform with a total unlocked value according to Defi Llama.
The total cost is insured on PancakeSwap. Source: Davey Lama
With signs of increased cryptocurrency trading volumes, there is a strong possibility that BNB will look further as the Binance ecosystem continues to expand and the Etheruem network continues to struggle with scalability and higher fees.
KCS / USDT
The KuCoin exchange was established in 2017 and operates outside of the Seychelles. Like BNB, KuCoin Token (KCS) volumes began to rally in early February as the beef market began to gain traction.
4-hour chart KCS / USDT. Source: TradingView
Since February 1, KCS has risen nearly 1,000% from the low of $ 1.17 to the highest of $ 12.96 on April 8, the highest price since January 2018.
The exchange capitalized on DeFi’s growth by listing popular and recently released tokens that would only be available on Uniswap and SushiSwap.
VORTECS data from Cointelegraph Markets Pro began to define the optimistic outlook for KCS on April 3, ahead of the latest price rally.
Cointelegraph’s exclusive VORTECS Crude Score is a mathematical comparison of historical and current market conditions drawn from a range of data points, including market sentiment, trading volume, recent price movements, and Twitter activity.
VORTECS ™ (green) indicates the price for KCS. Source: Cointelegraph Markets Pro
As shown in the chart above, the VORTECS ™ valuation of KCS began to rally on April 2, reaching a high of 79 on April 3, about 34 hours before the price started to rise by 90% over the next three days.