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Is It Worth Investing in Exchange-based Tokens In 2021 and Beyond?

Exploring exchange-based tokens can be worthwhile when users aim to diversify their cryptocurrency portfolio. Whether the token is tied to a centralized or decentralized exchange doesn’t necessarily make much difference. This past week, numerous tokens surged in value, although some noted a very steep setback. 

Most Exchange-based Tokens Perform Well

Investing in the infrastructure of the cryptocurrency and blockchain ecosystem is usually an intelligent choice. For the crypto industry, exchanges and trading platforms will always remain essential. Both centralized and decentralized providers can play a crucial role for various reasons. There are dozens of exchange-based tokens to explore, and they represent a combined market cap of $173 billion today.

That market cap has increased by over 10% in the past 24 hours. It is another sign of how investors approach these markets and maximize their earning potential through exchange-based tokens. While not all of these assets perform well simultaneously, the overall trend has been rather positive. More importantly, there are many assets beyond Binance Coin, UNI, and FTT to explore, all of which can provide decent returns on investments to those who are patient. 

Source: CoinGecko

This week’s strongest riser is Birake’s BIR asset, with a 98.9% price increase. Even though its market cap is below $11 million, the token attracts attention. The same goes for DVF, Gameswap’s GSWAP, FLEX Coin, 0.Exchange’s ZERO, and others. These are all relatively small-cap coins that seem to gain 15% or more in value this week. So again, there is prominent momentum for smaller exchange-based token options, even if most traders only look at bigger market caps.

Speaking of bigger market caps, it has been a good week for Crypto.Com Coin (CRO) and LINK (not Chainlink), two assets with a market cap of over $1 billion. CRO noted a 59% price increase, which is rather wild. For LINK, the 22.6% gain brings its value to $234 per token, which is rather high. It will be exciting to see if these assets can continue down this path over the coming weeks and months. 

Other Tokens Perform Less Well

Although it remains viable to invest in exchange-based token opportunities, there can be extreme volatility. That is apparent when looking at Leverj Glon, LXC, SpiritSwap, SWIFTCOIN, and Switcheo. All projects lost between 24.9% and 51.2% in value over the past week. Such setbacks are not uncommon in this industry, yet they are not too fun to look at either. 

Source: CoinGecko

It is intriguing to see prominent tokens like DODO, SUSHI, CAKE, SRM, and LRC lose over 13% in value this week. Granted, the market has been bearish for several days, but these currencies seemingly have little recourse at their disposal. There is always something for everyone in the world of exchange-based token offerings, although the individual performance of tokens differs greatly. 


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JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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