Three Altcoins to explore | KCS surging 31.5% , why are investors bullish on exchange tokens?

2021/10/26 10:09:30

Last week saw a new all-time high for Bitcoin at $67,277 on 20th October. However, the bullish sentiment surrounding the BTC ETF surge into this new ATH is cooling down. A combination of selling around the ATH to cash in profits and new short-term investors starting to sell during the drop may be causing this correction. Bitcoin even briefly touched into the $59,000 range. At this moment, Bitcoin seems to be stable around the $61,000 range, ending the week 0.19% down.

Ethereum also managed to hit a new ATH on 21st October at $4,361. However, Ethereum seems to be less volatile and remained stable. It closed the week at $4,149 with a 7.6% increase during last week.

Alt season is about to start. Many altcoins are surging and see 20-50% increases. Your portfolio may see green due to some altcoins starting to surge. The coins that were trending last week are the exchange tokens.

The surge of these exchange tokens is pending on a couple of factors. A lot has happened over the last couple of months, affecting crypto exchanges. One of the biggest exchanges, got in rough water all over the world due to regulatory issues, but seems to be riding out this storm in a composed manner. They are actively investigating options for complying with all the required regulations, in each territory. This seems to reflect positively on all other exchanges. Quite a few other exchanges are also dealing with government regulations. The SEC (Securities and Exchange Commission) is also playing an important role on how crypto exchanges can continue to function in the USA. They are especially interested in ETFs (exchange-traded funds). An ETF is a kind of security that tracks an index, commodity, or sector, but it can be traded on an exchange, just like a traditional stock.

The introduction of BTC ETFs, which tracks Bitcoin, had a positive effect on the Bitcoin market, leading to a new ATH. With a Bitcoin ETF, the price of a cryptocurrency is mimicked, in this case BTC, allowing you to buy into this ETF, without actually holding or trading any BTC. This BTC ETF can be bought on a traditional stock exchange and bypasses any complex storage and security procedures involved in trading on a CEX. It will open the crypto market to a whole new set of investors. Almost all CEXes benefited from this, and consequently, their tokens soared. The general tendency and expectation are that the SEC will allow ETFs directly tied to Bitcoin in a next move.

Last week, we also introduced DeFi 2.0 to you, in which we explained liquidity ownership. This gives a boost to the DEXes and DeFi in general, making it even more popular and accessible.

Today we look at three exchange tokens that were trending last week, KuCoin token (KCS), Curve Dao token (CRV), and Tokenlon (LON).

Notice: KuCoin does not provide financial advice. Please do your own risk assessment when deciding how to invest in cryptocurrency and blockchain technology.

KuCoin token (KCS)

Source: invezz

KuCoin is one of the biggest centralized crypto exchanges (CEX) in the world. On crypto aggregator CoinMarketCap, they are listed among the top 3 crypto exchanges. Forbes Advisor named them as one of the best crypto exchanges for 2021. During the last 24 hours, they were 33.64% up on trading volume, standing at $2.91 billion, with well over 2 million visitors per day. Monthly average traders were around 705k in Q3, and trading volume has surpassed $258 billion, up 720% compared with Q3 last year.

KuCoin Shares (KCS) are the native token of KuCoin, and they serve as rewards for new and existing users of KuCoin. A 50% share of the total trading fees paid out is distributed among KuCoin holders. During the last seven days, KCS was up by 31.5%.

Trade KCS and 400+ other altcoins on KuCoin

Curve Dao token (CRV)

Source: phemex

Curve Finance is a popular DEX, currently listed in 16th position on CoinMarketCap DEX list. TVL (Total Value Locked) is $15 billion on this AMM. Three reasons for Curve's popularity are attractive yield when staking on the Curve platform, demand for CRV tokens has increased among other platforms, and Curve can generate revenue in bull and bear markets. Trading volume was up by 96% in the last 24 hours. The latest protocol to launch on Curve is Harmony.

CRV, the Curve Dao token, is the utility token for the platform. It is used to incentivize liquidity providers and for governance. Last week, CRV saw a 50% increase.

Trade CRV and 400+ other altcoins on KuCoin

Tokenlon Network (LON)

Source: investing

Tokenlon Network is a decentralized exchange (DEX) that is fast to trade, easy to use, affordable, and secure. In contrast to other DEX models, on Tokenlon you know the final price of a trade before you commit to the trade. All transactions are gasless, except for ETH sell orders. By aggregating multiple liquidity sources, Tokenlon finds the best trading prices.

LON is the native utility token. It aligns ecosystem stakeholders and incentivizes the expansion of the ecosystem. If you hold LON, you get fee discounts, and the token is used for governance. LON went up 4% during the last seven days.

Trade LON and 400+ other altcoins on KuCoin

In conclusion

The future trend of exchanges and their platform tokens seem to be positive. Exchange tokens are popular and have a positive trend, not only during last week. As long as an exchange remains popular and keeps trading high volume, it is very likely that the associated token will keep doing well. A good indicator when analyzing the price trend of exchange tokens is the number of tokens they burn, thus creating scarcity. The demand for exchange tokens will continue to evolve, especially with current ATHs for Bitcoin. It is a good time to invest in exchange tokens.