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Exchange Tokens Emerging as Market Leaders in the Bull Market 2024

Last Updated March 28, 2024 12:37 PM
Guest Writer
Last Updated March 28, 2024 12:37 PM
By Guest Writer
Verified by Ana Alexandre
Key Takeaways
  • The resilience and adaptability of the platforms behind exchange tokens is crucial in determining their long-term success.
  • Investors should closely monitor the regulatory landscape surrounding top crypto exchanges.
  • The performance of exchange tokens can serve as a barometer for the broader cryptocurrency market.

Utility is often the first topic that comes up when we talk about cryptocurrencies, and it’s always one of the major considerations for long-term investors. In most cases, exchange tokens have some of the most fundamental utility of all tokens, as they are the backbone of major crypto exchanges.

Recent statistics show  these tokens’ transformative journey, in the past year, spotlighting the significant strides and hurdles they have encountered. Several exchange tokens have been resilient throughout the bear market, while others have maintained stable growth amidst increased liquidation.

So, what are the exchange tokens to look out for in 2024 and how are they reacting to the different dynamics of the current market?

The importance of exchange tokens

One of the most common benefits of an exchange token is reduced transaction fees on that particular platform. However, most tokens do much more: they anchor users to their platforms through tangible benefits and incentives.

For example, holding Binance’s BNB token slashes trading costs and grants eligibility for exclusive token sales through its Launchpad program. This kind of utility exemplifies how exchange tokens deepen user engagement and investment in the platform’s ecosystem.

Similarly, BGB, Bitget’s native token, showcases the direct impact of exchange tokens on platform loyalty and expansion, rewarding the holders, who demonstrate a commitment to community-driven development with voting rights on platform decisions.

Most importantly, such tokens mirror the exchange’s health and growth, adapting alongside the platform to meet evolving market and regulatory demands. Take, for example, MX from MEXC Global: it offers reduced trading fees and participation in MX DeFi sessions, allowing token holders to earn rewards by staking their $MX for liquidity.

By investing in exchange tokens, users essentially bet on the platform’s success, aligning their interests with the broader goals of the exchange. This symbiotic relationship emphasizes the unique position of exchange tokens in the crypto landscape, marking them as more than just digital assets.

Overview of the market

As of March 2024, the overall exchange token market capitalization is $125 billion , constituting nearly 4% of the total cryptocurrency market. The centralized exchange tokens represent over half of this market cap. This is a notable increase from last year, despite some exchanges’ regulatory and economic challenges.

Still, not all tokens experienced notable gains. Among other matters, regulatory decisions impacted the market throughout last year. Following legal actions from U.S. regulators, BNB saw a marked decrease in its market cap. However, its ability to recover and even exceed previous highs by early 2024 speaks volumes about the resilience inherent within well-managed exchanges and their tokens.

Similarly, WRX, the native token of India’s largest exchange, WazirX, gained over 50%, in the past year, despite the Indian government’s heavy crackdown on crypto.

This shows the growing demand for exchange tokens. If the exchanges themselves demonstrate strategic commitment, the tokens tend to perform well in the long term.

Top five exchange tokens to keep an eye on

BNB Token

BNB opened 2023 with a market cap of $39 billion, peaking at $54 billion by mid-April. However, the U.S. Securities and Exchange Commission (SEC) lawsuit and the Department of Justice’s (DOJ) criminal charges saw the token’s market cap decline to $33 billion by the end of August.

The exchange settlement with the DOJ and the ban from Nigeria last month posed significant questions regarding the token’s future.

However, BNB continues to show extreme resilience. Increased trading activities, upgrades to the blockchain network, external partnerships, and support for developing projects have driven BNB’s market cap to $85 billion in 2024.

It also maintained a dominant trading volume share of around 90%, illustrating its significant influence within the Binance ecosystem. The token’s value increased by 65% in a year, showing that Binacne’s native token will likely remain resilient to the growing regulatory scrutiny.

MX Token

MX token achieved a 248% increase in market cap, over the past year. This performance reflects MEXC’s strategic initiatives that resonate well with its user base, contributing to the platform’s overall growth and the token’s increased valuation.

MEXC has shown forward-thinking, listing several trending tokens early on, thus, capitalizing on presale investors and the early bull market. This has affected the token’s price: MX is up by nearly 95% in a year, having just hit an all-time high in March.

HT Token

Despite a 75% decrease in market value from the beginning of 2023, Huobi Token ($HT) remains a significant player in the exchange token arena. Rather than signaling defeat, this drop highlights a period of recalibration and strategic refocusing for Huobi.

The platform has made notable strides in capturing niche markets, areas where even giants like Binance have seen limited engagement. Most importantly, Huobi got an endorsement from Justin Sun, one of the most prominent figures in the industry. So, HT is definitely worth keeping an eye on.

BGB Token

BGB was one of the highest-value-gaining centralized exchange tokens in 2023. The token rallied over 120% in a year and reached an all-time high in February 2024. Its market cap also increased by 434%.

The launch of strategic investments and promotional activities significantly boosted BGB’s spot trading volume, which increased 94%, year on year. The token’s market share rose from about 0.5%, in early 2023, to 1.9%, in February 2024, making it the second-largest exchange token by trading volume.

OKB Token

OKX is the second largest centralized exchange in terms of daily transaction volume, which earns OKB its rightful position on this list. Although the token saw a 53% reduction in market value throughout 2023, it started recovering in November and is now up by nearly 30% in a year.

What gives OKX a unique edge is its dedicated non-fungible token (NFT) marketplace. The platform is the third-largest NFT marketplace in terms of transaction volume, even surpassing OpenSea recently. So, OKB will likely benefit from the renewed interest in NFTs throughout this bull market.

To sum it up

As we enter one of the most highly anticipated bull markets in years, the increased trading volume across the industry will likely reflect positively on the exchange token market. However, it’s important to remember that regulatory security will continue to impact centralized exchanges and the value of their native token.

About the author: Gracy Chen  is a Managing Director at crypto derivative exchange BitGet. Her journey into the crypto world began in 2014 when she became an early investor in BitKeep, Asia’s pioneering decentralized wallet. Before venturing into the crypto and tech sectors, Gracy established herself as an accomplished anchor and producer at Phoenix TV’s technology and finance channel. Her role involved interviewing influential tech leaders, such as Kevin Kelly, the founding editor of Wired.

Disclaimer: The views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to CCN, its management, employees, or affiliates. This content is for informational purposes only and should not be considered professional advice.

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