Sentiment in the cryptocurrency market still remains bearish as market sales rose after subdued US inflation data raised fears of a possible hike in the US Federal Reserve’s key rate.
Bitcoin, after gains and appeared to move towards $31,000 over the week, fell as the bears took over, with the cryptocurrency’s flagship tumbling and dropping below $28,000.
However, while the majority of the top 100 cryptocurrencies by market cap recorded weekly declines, the gains from LEO and FTT led the rally in the market, with gains of 5% and more as exchange tokens led the top 100 rally. This is why:
UNUS SED LEO LEO +9.85%
- UNUS SED LEO is a utility token used in the iFinex ecosystem. The name is based on a Latin quote from one of Aesop’s fables. Cryptocurrency allows Bitfinex users to save money on trading fees. The amount of the discount depends on the amount of LEO the customer has in their account and the savings offered are split into three tiers. There are fluctuations depending on whether a trading pair is crypto to crypto or crypto to stablecoin.
- The LEO token has become the talk of the town in the cryptocurrency community, especially since it became the last entrant in the top 20 cryptocurrency list as it currently ranks 16th. While the market sold out for most of May and also in June, LEO barely managed to hold its value. This means that while all the coins around it were sold, the LEO coin managed to maintain its value, automatically ranking it higher.
- The reason for the price increase is due to an increase in interest in the token. According to data from Glassnode, active addresses using the coin have steadily increased in recent days, especially since early May. However, this could be because it caught the attention of many traders.
- Looking further, the Network Value to Transactions (NVT) ratio for LEO is also quite low. This therefore indicates that the coin has an attractive valuation when it comes to transaction value on the blockchain. Quite similar to the PE ratio in traditional stock markets, the N/A ratio is defined as the ratio between market capitalization and trading volume over a period of time.
In summary, LEO could act as a hedge against future mishaps, as was the case this time around. Indeed, since the beginning of May, LEO has barely corrected 16%, while Bitcoin has bottomed out more than 30% in the same time frame. However, this way of thinking has to stand the test of time.
FTX’s FTT +6.00%
- FTT is the native cryptocurrency token of the FTX crypto derivatives trading platform, launched on May 8, 2019. The team behind FTX includes some of the biggest crypto traders of recent years who, after finding problems with most mainstream crypto futures exchanges, decided to launch its own platform. FTX claims it stands out with features like recovery prevention, a centralized collateral pool, and universal stablecoin settlement.
- FTT is an exchange token which is a class of cryptocurrencies associated with a cryptocurrency exchange. Exchange tokens like FTT are inherently less risky than most cryptocurrencies available as they have immediate and real-world use cases. Nor are they based on speculation. These tokens power crypto exchanges, giving them a chance of survival as they are used on a daily basis. This means that the coins are almost always in circulation.
- The FTT is one of the best coins to hold as it has an active combustion mechanism to keep the stock low. The combustion mechanism is done through a process of redemption and burning. It currently ranks number 19 with a market cap of $3.7 billion.
- Since FTT derives value from the performance of the FTX exchange, the reason for the rally can be attributed to FTX trading volume exceeding Coinbase’s in May. Bitcoin’s spot trading volume on FTX surpassed Coinbase for the first time, reaching $30 billion in one month. Tushar Jain, co-founder of Multicoin Capital, which co-owns FTX, shared the chart showing when FTX overtook Coinbase in trading volume.
- According to CoinMarketCap, FTX is now the second largest centralized exchange in terms of trading volume. Binance still tops the charts with a whopping $17 billion per day, but FTX is now trading in second place over $2 billion per day.
Moreover, according to statistics, FTT ranks fourth among centralized exchange tokens. The FTT token is up 6% per week, despite troubling macro factors weighing on the broader market. Only Bitfinex’s LEO token outperforms it at position 2 with a 10% gain in the last seven days.