Frax Price Prediction 2025: FXS Aims to Shoot Past Previous All-Time High

Key Takeaways

• The Frax Share token is recovering from an all-time low in August.
• FXS is still down from where it was last year.
• Our Frax Share price prediction suggests FXS could reach $12.50 in 2025.

Frax Finance’s Frax Share (FXS) token had a good November, cashing in on a wave of crypto optimism to more than double.

However, considering that FXS is still recovering from an all-time low in August, investors will hope that it hasn’t stopped going up just yet. On Dec. 6, 2024, FXS was worth about $4.45.

The news that Frax Finance will launch its own Layer 2 Scaling Solution, tentatively called Fraxchain, in February 2024 has generated interest in the Frax Share (FXS) token. This interest has not resulted in a price increase.

However, Frax’s holders will be hoping it can spearhead a renaissance in the field. 

But what is Frax Share (FXS)? How does Frax Share work? Let’s take a look at our own FXS price prediction, made on July 3, 2024. We’ll also examine the FXS price history and talk a little about what FXS is and what it does.

Frax Share Price Prediction 

Here are our Frax Share price predictions, made on Dec. 6 2024. While we take the utmost care with our price forecasts, we do need to remind you that price predictions, especially for something as potentially volatile as crypto, can often be wrong.

Frax Share Price Prediction 2025

By 2025, FXS is expected to navigate through its current consolidation phase, building on the bullish breakout. The minimum price of $2.92 reflects a scenario where market conditions weaken, leading to deeper retracements. The average price of $6.80 assumes steady growth, supported by rising adoption of the Frax ecosystem and recovery in the broader crypto market. A maximum price of $12.50 accounts for a scenario where Frax gains significant traction, potentially driven by innovations or partnerships.

Frax Share Price Prediction 2026

By 2026, FXS could benefit from increased integration and utility in decentralized finance (DeFi) as the crypto market matures. The minimum price of $4.00 reflects conservative growth amidst market uncertainties. An average price of $10.00 assumes the successful implementation of ecosystem expansions and sustained investor interest. The maximum price of $18.00 reflects a strong bull market scenario where Frax’s unique value proposition positions it as a major player in DeFi.

Frax Share Price Prediction 2030

Looking toward 2030, FXS has significant long-term potential if it continues evolving as a critical DeFi asset. The minimum price of $6.50 accounts for a scenario where growth slows due to regulatory challenges or market stagnation. An average price of $20.00 reflects consistent ecosystem growth and wider adoption of algorithmic stablecoins and related infrastructure. The maximum price of $35.00 assumes exponential adoption of DeFi solutions, with Frax playing a pivotal role in the next wave of financial innovation.

Frax Share Price Analysis

Frax Share (FXS) has broken out of a prolonged downtrend that defined much of 2024, following consolidation between $1.60-$2.40. The breakout signals the start of a bullish phase, with the price surging 200% and testing the $5 resistance zone.

The RSI shows strong bullish momentum but approaches overbought territory, suggesting a possible slowdown or consolidation near $5. This zone corresponds to historical price interaction and will be critical in determining whether the uptrend continues or retraces to lower levels.

Short-term Frax Share Price Prediction

FXS completed an impulsive five-wave rally on the one-hour chart, peaking at $5.02, a major resistance zone. A corrective ABC pattern is forming, with an expected retracement to key Fibonacci levels before potentially resuming the uptrend.

A drop below $4.23 confirms the corrective structure, with deeper retracements likely. However, holding above $3.96 signals resilience and sets the stage for another attempt to break $5.02. A breakout above $5.02 would validate renewed bullish momentum, targeting higher Fibonacci extensions. The Frax Share price prediction for the next 24 hours depends on whether it can break out.

Frax Share Average True Range (ATR)

The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days. A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility.

Since ATR values can be higher for higher-priced assets, normalize ATR by dividing it by the asset price to compare volatility across different price levels. On Dec. 6 2024, Frax Share’s ATR was 0.355, implying fairly high volatility. 

Frax Share Market Cap to TVL Ratio

The Total Value Locked (TVL) to market cap ratio (TVL ratio) measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts. This ratio shows the project’s utilization and links the platform’s health to locked asset value.

A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform. A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets. On Dec. 6, 2024, the Frax Share TVL ratio was 0.63, indicating undervaluation. It is worth mentioning that Frax Share’s market cap has never been higher than its TVL. 

Frax Share Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above and below the 50 line also indicate if the trend is bullish or bearish.

On Dec. 6, 2024, the Frax Share weekly RSI was 78, indicating overbought conditions.

CCN Strength Index

The CCN Strength Index combines an array of advanced market signals to measure the strength of individual cryptocurrencies over the last 30 days.

Every day, it assigns a strength score, ranging from 0 to 100, to the top 500 assets by market capitalization on CoinMarketCap, focusing on both trend direction and the intensity of price movements.

• 0 to 24: Assets exhibit significant weakness, showing signs of sustained downtrend behavior.
• 25 to 35: The price tends to move within stable bounds with minimal volatility.
• 36 to 49: Assets begin a stable uptrend but without strong surges.
• 50 to 59: Consistent growth with moderate price advances, building momentum.
• 60+: Sharp price movements and high demand indicate stronger volatility and trend shifts.

The index dynamically adapts to rapid changes. For example, an asset experiencing a 100% increase within a short timeframe would see a sharp jump in its score to reflect the intensity of the rise.

However, should that asset stabilize at this new price level, the score will gradually taper down and align with the dampened momentum as the movement normalizes. The same principle applies to rapid declines: a sudden drop will spike the score downward, but the score will slowly adjust back up as volatility decreases.

On Dec. 6, 2024, Bitcoin scored 85.7 on the CCN Index, suggesting momentum strong enough for a trend shift.

Frax Share Price Performance Comparisons

FXS is a liquid staking governance token on Ethereum. Let’s compare it with other similar tokens.

Best Days and Months to Buy Frax Share

We looked at the Frax Share price history and found the best times to buy FXS.

FXS Price History

Let’s take a closer look at Frax Share’s price history . While past performance doesn’t necessarily indicate future results, understanding what Frax Share has done can help us contextualize future predictions.

Frax Share Market Cap

Market capitalization, or market cap, is the sum of the total number of FXS in circulation multiplied by their price.

On Dec. 6, 2024, Frax’s market cap was $381 billion, making it the 235th-largest crypto by that metric.

Who Owns the Most Frax Share (FXS)?

On Dec. 6, 2024, one wallet held more than one-third of the FXS supply.

Richest FXS Wallet Addresses

As of Dec. 6, 2024, the five wallets with the most Frax Share  were

• 0xc8418af6358ffdda74e09ca9cc3fe03ca6adc5b0. This wallet held 33,521,167 FXS, or 33.52% of the supply.
• 0x34c0bd5877a5ee7099d0f5688d65f4bb9158bde2. This wallet held 14,584,984 FXS, or 14.58% of the supply.
• 0x63278bF9AcdFC9fA65CFa2940b89A34ADfbCb4A1. This wallet held 8,861,838 FXS, or 8.86% of the supply.
• 0xf977814e90da44bfa03b6295a0616a897441acec. This wallet, listed as Binance, held 6,000,000 FXS, or 6% of the supply.
• 0x940750a267c64f3bbce31b948b67cd168f0843fa. This wallet held 3,139,439 FXS, or 3.14% of the supply.

Frax Share Supply and Distribution

From the Frax Share Whitepaper

In its technical documentation or whitepaper , Frax Finance says FXS is designed to link the various parts of the protocol together. 

It says: “It is meant to be volatile and hold rights to governance and all utility of the system. It is important to note that we take a highly governance-minimized approach to designing trustless money in the same ethos as Bitcoin. We eschew DAO-like active management such as MakerDAO. The less [sic] parameters for a community to be able to actively manage, the less there is to disagree on.”

Frax Share (FXS) Explained

Frax Finance  supports the Frax stablecoin. Because Frax aims to always be at $1, it needs some help in doing so. 

The Frax Share crypto, also known by its ticker handle FXS, is minted if Frax moves above the dollar. Likewise, it is burned or destroyed when Frax falls below $1.

Frax Finance was launched in 2020 by computer programmer Sam Kazemian and former Donald Trump adviser Stephen Moore. 

How Frax Share Works

As we have already said, Frax Share helps the Frax stablecoin maintain parity with the dollar. Unlike many other stablecoins, it does not necessarily need to be worth exactly $1 for it to be exchanged for a dollar. This means that, at least in theory, people can gain arbitrage opportunities from trading Frax.

If the way Frax works seems familiar, it is because it is an algorithmic stablecoin, with Frax Share serving as its collateral token. This means it operates similarly to the ill-fated USD stablecoin and the doomed Terra coin. 

FXS also gives its holders the right to vote on changes to the network. People can buy, sell, and trade it on exchanges. 

Is Frax Share a Good Investment?

It is hard to tell. While the news that Frax Share is to create its own Layer 2 Scaling Solution—not to be confused with an actual blockchain—means the people behind Frax Share are in the business of trying to grow their network, there are still concerns.

Meanwhile, FXS is still not too far off an all-time low, and a bullish November, triggered by a thriving crypto market, does not mean the coming months will be as good.

As always with crypto, you should do your own research before deciding whether or not to invest in FXS.

Will Frax Share go up or down?

Our Frax Share price predictions in multiple time frames are bearish. However, price predictions have a well-earned reputation for being wrong. Keep in mind that prices can and do go down and up. 

Should I invest in Frax Share?

Before deciding whether to invest in Frax Share, you will have to do your own research, not only on FXS but other related coins and tokens. Either way, you will also need to ensure you never invest more money than you can afford to lose.

Technical analysis by Nikola Lazic.

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