Key Takeaways
- In the last week, BNB has surged by more than 25%.
- Meanwhile, other exchange tokens have also outperformed Bitcoin.
- The recent rally reflects rising trading volumes across centralized exchanges.
In the past week, BNB, OKB, KuCoin and other popular exchange tokens have outperformed Bitcoin, with some surging over 25%.
The latest rally coincides with rising trade volumes across crypto exchanges as exchange tokens prove their worth in the bull market.
Bullish Conditions Boost Exchange Tokens
During a period when the price of Bitcoin increased by just 6%, BNB pumped over 35%. Meanwhile, OKB and GateToken both climbed over 15%. Lagging slightly behind, but still ahead of BTC, KuCoin token (KCS) and MX are up around 12%.
After a difficult February in which almost all exchange tokens fell behind Bitcoin’s market gains, their recent performance suggests that the concept still appeals to traders.
Traditionally, exchange token prices have risen in line with trading volumes.
With crypto exchanges offering up to 100% discounts on trading fees for swaps that use their native currency, traders are incentivized to use tokens like BNB and OKX when market conditions turn bullish.
BNB Remains Most Popular Exchange Token
According to an analysis by Token Terminal, BNB has maintained close to a 90% share of exchange coin trading volumes for most of the past year.
https://twitter.com/Becky_Trading/status/1767532892387791192
The token’s dominance has remained consistent despite Binance’s declining share of the crypto trading market. With a market capitalization of over £75 billion, BNB is still the most valuable exchange token by a long way.
Moving down the ranks, however, there is much more competition among tokens issued by centralized exchanges.
BGB Market Share Increases
Arguably the breakout exchange token of 2023, Bitget’s BGB has increased its share of the total trading volume from around 0.5% in early 2023 to approximately 1.9% in Feb 2024, Token Terminal observed.
The rise in BGB volumes builds on Bitget’s growing user base, which reached 25 million in February.
In an interview with CCN, the company’s Managing Director Gracey Chen attributed Bitget’s success to its employees. As one of very few crypto exchanges founded by a woman, Sandra Lou, Chen highlighted the company’s track record of female leadership. (Which includes current CEO Rachel Austin.)
Chen said: “At Bitget, we keep enhancing our products and services and believe women’s mindset, accumen and power can not only augment the company’s capabilities mentally but also financially.
“Their perspectives and participation help optimize business planning and product design and spur innovation and changes. This is because women sometimes trade and invest differently, demonstrating a sense of empathy for the challenges and dilemmas faced by the group.”
