Even though cryptocurrency enthusiasts may not always look at security tokens, it remains a very intriguing industry. More importantly, there is some solid ongoing growth month-over-month. Both the market cap and trading volume note substantial gains, indicating that demand for security tokens is rising.
Security Tokens Continue To Build Momentum
Although the overall market for security tokens is still tiny – compared to crypto assets or other investments, there is significant momentum. Per the STOMarket report, the industry’s market capitalization has increased by 23.11% in August 2021. A significant leap forward, pushing the total to nearly $1.1 billion. It is a good start, and there is still more room for future growth. New projects will come to market over time, and existing offerings will continue to step up their game.
The ongoing market cap growth for security tokens can be attributed to overall strong market performance. Newcomer INX Limited (INX) quickly took the $1 market cap spot. Moreover, the INX token appreciated 115.13% in August, creating a very explosive and impactful launch. Realio Network LTD (+39.9%) and 9166 Devonshire RD (+13.45%) also noted a solid month in August.
Unfortunately, some assets performed worse. The biggest loss is noted by 9943 Marlow St, decreasing by over 37.3% in August. Mt Pelerin (-18.41%) and tZERO – a surprising name on this list – (-16.03%) complete the top three. An interesting mix of positive and negative changes, although the bullish momentum outweighs the deficits. As such, it is only normal to see the industry market cap go up by 23.11%.
Furthermore, there appears to be more interest in trading security tokens. August 2021 saw a volume increase of 27.27%, which is rather steep. The security tokens market noted over $7 billion in monthly volume and may very well hit $10 billion a month before the year is over. This year has been kind to these markets, although there are still a few months to go before we turn the page on 2021.
Trading Platforms Competition
Making security tokens more accessible is crucial to sustaining future growth. There are several trading platforms for security tokens, although their volume and market cap will differ greatly. In August, CryptoSX Exchange was the third-biggest volume contributor with $117,284. That may not seem too significant, although it is crucial to broaden access to these investment vehicles whenever possible.
The majority of volume comes from INX Limited ATS, with $3.348 billion in monthly volume. tZERO ATS is not that far behind with $2.869 billion. Both platforms have a market cap of over $400 million, confirming room for more competition. Several other trading platforms exist today, and it will be interesting to see which of them can make a long-term impact.
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