Frax Share Price Prediction 2024: Can FXS Continue Beating the Market?
What's next for Frax Share?
Key Takeaways
- The news that Frax Finance is launching its own Layer 2 Scaling Solution this year boosted interest in Frax Share (FXS).
- Frax Share helps support the Frax stablecoin.
- Can FXS continue its recent uptrend and retest the levels it enjoyed in April 2022?
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.
FXS has taken a hit over the last year or so, as algorithmic stablecoins have become something of a sector to avoid in the wake of the collapse of the Terra (LUNA) blockchain.
However, Frax’s holders will be hoping it can spearhead a renaissance in the field.
Frax did not immediately respond to a request for comment.
But what is Frax Share (FXS)? How does Frax Share work? Let’s see what we can find out, and also take a look at some of the Frax Share Price Predictions that were being made as of January 24, 2024.
Frax Share Price Prediction
Let’s take a look at some of the Frax Share price predictions that were being made as of January 24, 2024.
It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
| 2024 | 2025 | 2030 | |
|---|---|---|---|
| Prediction #1 | $22.01 | $25.44 | $74.79 |
| Prediction #2 | $16.08 | $23.55 | $171.94 |
| Prediction #3 | $27.71 | $37.60 | $87.08 |
First, CoinCodex made a short-term Frax Share price prediction which said the token would drop to $9.31 on January 29 before recovering to $11.07 on February 23. The site’s technical analysis was bullish, with 25 indicators sending bullish signals and 2 making bearish ones.
Frax Share Price Prediction for 2024
DigitalCoinPrice said FXS would be worth $22.01 this year while PricePrediction.net had it at $16.08. Bitnation , meanwhile, said it would reach $27.71 this year.
Frax Share Price Prediction for 2025
Moving on, Bitnation thought FXS would trade at $37.60 in 2025, while DigitalCoinPrice argued it would reach $25.44 then. PricePrediction.net was more cautious, saying it would get to $23.55 next year.
Frax Share Price Prediction for 2030
Looking forward to a more long-term Frax Share price prediction, PricePrediction.net said it would break through the $100 barrier to trade at $171.94 in 2030. DigitalCoinPrice said it would be worth $74.79 that year. Bitnation made a FXS price prediction that had it reach $87.08 at the start of the next decade.
Google BardAI Price Prediction for Frax Share (as of January 24)
Google’s BardAI platform gave the following price prediction for Frax Share on January 24. Please remember that price predictions are very often wrong and that artificial intelligence should not be trusted.
Short-term (3 months):
- Potential range: $11 – $13.50
- Reasons:
- Overall cryptocurrency market sentiment: If the overall cryptocurrency market is bullish, FXS is likely to follow. However, if the market is bearish, FXS could also fall in price.
- Frax ecosystem adoption: If the Frax ecosystem continues to grow and adoption increases, the demand for FXS could increase, which could lead to a higher price.
- Governance proposals: The FXS community will be voting on several governance proposals in the next 3 months. If these proposals are successful, they could have a positive impact on the price of FXS.
- Overall economic conditions: The global economy is currently facing a number of challenges, such as inflation and rising interest rates. These factors could affect the price of all cryptocurrencies, including FXS.
Medium-term (6 months):
- Potential range: $13 – $14
- Reasons:
- Increased adoption of DeFi: DeFi is a rapidly growing industry, and Frax Share is a key player in this space. As DeFi adoption continues to grow, we expect Frax Share’s price to increase accordingly.
- Improved tokenomics: The Frax team is constantly working to improve the tokenomics of Frax Share. This includes increasing the stability fee and reducing the issuance rate. These changes will make Frax Share more attractive to investors and could contribute to its price increase.
- Positive media coverage: Frax Share has been receiving positive media coverage lately, which has helped to increase investor awareness of the token. This could lead to increased demand for Frax Share and, consequently, its price increase.
Long-term (5 years):
- Potential range: $16.48 – $44.91
- Reasons:
- Adoption of stablecoins: If stablecoins become more widely adopted, this could lead to increased demand for FXS, which could drive up its price.
- Development of new features: If the Frax protocol is developed with new features, this could attract more users and investors, which could also drive up the price of FXS.
- Regulation: If stablecoins are regulated by governments, this could have a negative impact on the price of FXS.
Recent Updates from Frax Share
The world of Frax has been relatively quiet since the Layer 2 announcement last year. That doesn’t mean that the price has been stagnant, though. As we will see, there have been movements over recent months, and investors will be hoping there will be a recovery soon.
FXS Price History
Let’s now take a look at some of the highlights and lowlights of the Frax Share price history . While we should never take past performance as an indicator of future results, knowing what the token has done can help give us some very useful context when it comes to either making or interpreting a Frax Share price prediction.
FXS first came onto the open market in late December 2020, when it was worth about $3.90. When the crypto market flourished in early 2021, FXS did well, peaking at above $25 in January, but then sliding down, only to make a comeback later on in the year, when it closed at $39.04.
The news that Terra was launching a crypto pool that featured the Frax stablecoin saw it reach new heights. On 3 April 2022, it traded at an all-time high of $42.67.
Unfortunately, Terra collapsed the following month. FXS was left stunned, dropping below $10 in May. The token spent much of the rest of the year being largely unimpressive, and it closed 2022 at $4.14, an annual loss of nearly 90%.
Frax Share in 2023 and 2024
FXS started 2023 well before going downhill.
FXS went above $10 in January on its way to a peak of $14.09 on February 9. The token then dropped down. When the market slumped in June following the United States Securities and Exchange Commission (SEC) announcing it was suing the Binance and Coinbase exchanges, FXS fell to $4.61 on June 15.
Although it recovered to $7 on August 15, it dropped again. The market fell when Elon Musk’s SpaceX sold millions of dollars worth of Bitcoin (BTC).
It then started the 2024 decreasing to $7.30 after having closed the 2023 at around $9.50. Since the first week of January, it then started an uptrend that is still lasting, with the value of a coin at $9.97 on January 24, 2024.
At that time, there were about 76.5 million FXS in circulation out of a total supply of 99.7 million. This gave the token a market cap of around $764.3 million, making it the 78th largest crypto by that metric.
Frax Share Price Analysis
FXS has been in a correction phase since reaching its all time high. Since June 2022, it has had a support level of $4.
Since October, Frax Share has been on an upward journey, potentially signaling the start of a new bull cycle. There could be more upward movement and, if it reaches $16, it could hit a new all-time high this year.
Is Frax Share a Good Investment?
It is hard to tell. While the news that it 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.
The token is out of the woods yet. With the current state of crypto triggered, at least in part, by the collapse of the UST algorithmic stablecoin, you would not be too surprised if thoughtful investors gave that entire sector a wide berth.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in FXS.
Will Frax Share go up or down?
No one can really tell right now. While the Frax Share crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Should I invest in Frax Share?
Before you decide whether or not to invest in Frax Share, you will have to do your own research, not only on FXS, but on other, related, coins and tokens such as Terra Classic (LUNC). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
Who is the founder of Frax Share?
Sam Hamidi-Kazemian is an Iranian-American software programmer. He is the founder of Frax Finance. Previously, he co-founded Everipedia, a for-profit, wiki-based online encyclopedia.
Who Owns the Most Frax Share (FXS)?
On January 24, 2024, one wallet held 38.22% of the supply of FXS.
Richest FXS Wallet Addresses
As of January 24, 2024, the five wallets with the most Frax Share were
- 0xc8418af6358ffdda74e09ca9cc3fe03ca6adc5b0. This wallet held 38,100,472 FXS, or 38.22% of the supply.
- 0x63278bF9AcdFC9fA65CFa2940b89A34ADfbCb4A1. This wallet held 16,655,502 FXS, or 16.71% of the supply.
- 0x9aa7db8e488ee3ffcc9cdfd4f2eaecc8abedcb48. This wallet held 2,620,681 FXS, or 2.63% of the supply.
- 0xb744bea7e6892c380b781151554c7ebcc764910b. This wallet held 2,358,238 FXS, or 2.37% of the supply.
- 0x03b59bd1c8b9f6c265ba0c3421923b93f15036fa. This wallet held 2,235,265 FXS, or 2.24% of the supply.
Fact Box
| Supply and Distribution | Figures |
|---|---|
| Maximum supply | 100,000,000 |
| Circulating supply (as of January 24, 2024) | 76,466,101 (76.46% of total supply) |
| Holder distribution | Top 10 holders owned 9.63% of supply as of January 24, 2024 |
From the 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 stand at $1 all the time, 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 in which Frax works seems familiar, it is because it is an algorithmic stablecoin, with Frax Share serving as its collateral token. This means it operates in a similar way 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.
Because FXS is based on the Ethereum (ETH) blockchain, it is a token, not a coin. You might see references to such things as a Frax Share coin price prediction, but these are wrong.
Frax Share Attention Tracker
Here is a chart for Frax Share Google search volume for the past 90 days. This represents how many times the term “Frax Share FXS” has been Googled over the previous 90 days.
FAQs
Will Frax Share reach $100?
It might do, but not for some time. PricePrediction.net says it will reach three figures in 2028 while DigitalCoinPrice thinks it will reach that level in 2032.
Keep in mind that FXS’ highest ever price, which came in April 2022, was $42.67.
What is Frax Share used for?
The Frax Share (FXS) token supports the Frax stablecoin. Holders can vote on changes to the Frax Finance platform. People can buy, sell and trade it on exchanges.
Further reading
Kaspa Price Prediction 2024: Will KAS Reach New Heights?
Astar Price Prediction 2024: Is ASTR’s Recovery Over?
Cartesi Price Prediction 2024: Will CTSI’s Rally Hold?
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
