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Exchange cryptos generally do not experience a lot of hype and are not discussed in great detail. However, I believe it is a good idea to consider these cryptos. These crypto projects offer significant utility compared to most other projects as users rely on exchanging their cryptos and paying gas/exchange fees. Many of these cryptos also have their own ecosystems that drive demand.
However, the most important catalyst for these exchanges’ cryptos is the expected upcoming altcoin season. The low season is when Bitcoins (BTC USD) Dominance is decreasing and traders are rushing into alternative crypto coins and tokens. The best way to trade these altcoins is through these exchanges. Therefore, this cycle ultimately drives up stock market crypto valuations. Therefore, I think it might be a good idea to look into these tokens if you think the altcoin space is about to heat up.
Binance Coin (BNB-USD)
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Binance coin (BNB-USD) is the native cryptocurrency issued by the Binance exchange. BNB was created in 2017 as a utility token and offers users discounted trading fees on the Binance platform. Since its launch, BNB’s utility has expanded to include online services, travel bookings, and entertainment. However, most of the demand comes from exchange fees and users transacting on the Binance blockchain and paying gas fees with BNB.
The exchange has been under endless scrutiny lately. However, I believe that this review could have a long-term positive impact on Binance. Its former CEO Changpeng Zhao pleaded guilty charged with money laundering and sentenced to four months in prison.
In addition, the company agreed to pay a $4.3 billion settlement to resolve the allegations, while Zhao agreed to pay a $50 million fine. However, all of this controversy is a good incentive for Binance not to become the next FTX. I believe a new crypto rally will likely increase demand for BNB. It is one of the most popular places to trade altcoins and the chain itself has thousands of tokens. Binance also conducts quarterly burns. This was seen during the last token burn Removal of 2,141,487.27 BNB tokens from circulation, which is approximately $636 million.
OKB (OKB-USD)
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OKB (OKB-USD) is a token released by the OK Blockchain Foundation and the Maltese crypto exchange OKEx. As you may have guessed, OKB is primarily used to pay trading fees. OKEx is one of the largest crypto exchanges in the world and using the token allows users to earn lower fees when trading.
OKB is an ERC-20 token and also a coin on its own OKExChain. However, OKExChain is a fairly small ecosystem. Most of the demand is due to the OKEx change. OKX is now the second largest crypto exchange in the world and is growing very quickly. It also is considering a rebrand in the US and try to gain more market share in the US crypto market. I believe that as long as the exchange continues its aggressive expansion, the OKB token could see significant gains.
Uniswap (UNI-USD)
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Uniswap (UNI USD) is a decentralized crypto trading protocol that allows users to trade crypto without the use of an intermediary. Uniswap’s native token is called UNI. UNI tokens enable shared community ownership and holders can vote on important protocol changes. It is the largest decentralized exchange in the world ether (ETH-USD) Blockchain. Most altcoins traded on Ethereum are transacted through Uniswap.
Unlike centralized exchanges, users are not required to complete KYC (Know Your Customer) checks or verifications. Additionally, traders can conduct transactions via MetaMask and other popular Watters. Uniswap is a completely decentralized and open source platform, so I would argue that it is much more secure in many ways than centralized exchanges.
I believe that the upcoming off-season could lead to an increase in trading activity on the Ethereum blockchain. The Ethereum protocol also supports Binance Smart Chain and many Layer 2 networks based on its blockchain. Therefore, I think there is significant upside potential for UNI in the long term.
At the time of publication, Omor Ibne Ehsan did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.