Exchange Tokens in the Spotlight
Many centralized exchanges have their own tokens, but each serves a different purpose. We provide an overview of several of these tokens and discuss how their utility can play into their valuations. Moreover, we break down the benefits these tokens can bring to their respective exchanges.
Exchange tokens have significantly outperformed BTC and ETH in recent months. Exchange tokens such as BNB, FTT, and HT have seen strong gains in 2021 through April 27, 2021, posting gains of approximately 1299%, 781%, and 324%, respectively, according to data from CoinGecko. This is well above the returns of BTC (87%) and ETH (236%) over the same period. We believe higher exchange trading volumes and demand for cheaper DeFi networks have been drawing investors to exchange tokens.