Since the pandemic struck, there has been a mad rush for crypto. Currently, there is a specific interest for exchanges driving their tokens to new all-time highs.
Since the recent stock buying restrictions on trading platforms, retail equity traders have been forced to seek alternatives such as centralized (CEX) and decentralized exchanges (DEX). This has made them get so much attention. It made their trading volumes skyrocket, especially in the last week.
GameStop and other stocks had their shares plunge from a trading mania sparked by short-selling, making the stocks surge and hedge funds losing billions. This was heated up by Reddit, which changed the whole ball game.
It has generated more interest in other digital crypto exchanges pushing their performances up.
CEX and its tokens on the rise
For Binance, its BNB token attained a new all-time high at $50.27 on early Monday. For FTX, its FTT token achieved a new all-time price of $12.95 on Friday.
According to Binance CEO Changpeng Zhao, the BNB token price is driven by different factors, mainly its multiple uses. BNB can be used in different ways on different platforms and projects within the crypto ecosystem. In essence, it can facilitate many transactions in a day.
Retail traders are primarily responsible for BNB and FTT’s high prices as they move from the traditional stock market.
The recent GameStop saga is just evidence that traditional trading platforms and exchanges can close part of the trading process in no time. This was an eye-opener for retail traders as they look into alternative options such as the cryptocurrency markets.
Since FTX has tokenized equities in its listing, Robinhood users still have the options to maximize on FTX if they want to continue with stocks but without limits. FTX is like an improved version of the traditional brokerages in the market. From January, FTX has attained all-time high traffic with over $5 billion daily trading volume.
To take advantage of the recent retail trading drama caused by GameStop, FTX introduced a WallStreetBets (WSB) index quarterly futures contract. Some of the stocks included in the contract include Nokia, Blackberry, AMC Entertainment, and iShares Silver Trust.
DEX not left behind
Just as CEX was shining, DEX was not left behind either. In January alone, the total trading volume on DEX attained an all-time high of $50 billion. The high-performing DEXs were UniSwap and SushiSwap that had trading volumes of 48.8% and 23.3%, respectively. The main driving force for the high performance of SushiSwap is the Sushi token price surge.
According to Messari, a decentralized finance tracker, both UniSwap and SushiSwap broke the limits of their last high prices. Retail traders mainly fuel the price movement. So far, UniSwap tops the list as the most searched DEX on Google, showing it is in high demand.
Additionally, records show that the -number of people with an interest in DEX as an alternative for centralized exchanges has significantly increased.
As the interest for DEX heightens, the primary beneficiaries remain UNI and Sushi tokens that have experienced a dramatic price increase.
The current rush for CEX and DEX is just the beginning. There are chances that the trend will still be on as smaller platforms find their way up the chain.