Key Points
- Most exchange tokens didn’t perform as well as Bitcoin, according to a TokenInsight study.
- Despite this, some crypto exchange tokens like BGB and MX managed to outperform Bitcoin.
A recent study by TokenInsight has found that the majority of exchange tokens have underperformed compared to Bitcoin.
Popularity of Exchange Tokens
Despite the rising popularity of crypto exchange tokens like Binance Coin (BNB) and Bitget Token (BGB), particularly in the context of the decentralized finance and non-fungible tokens boom, Bitcoin has remained a superior investment option, as per the research by TokenInsight.
However, not all tokens have shown the same profitability levels. Some have experienced side effects due to regulatory pressures.
BNB and Market Cap of Exchange Tokens
The report highlighted that BNB faced a significant decline in the second half of 2023 due to regulatory impacts. Nonetheless, it rebounded towards the end of the year and surpassed its previous all-time high at the start of 2024.
As of February, crypto exchange tokens collectively held a market cap of $68 billion, accounting for 3.2% of the entire crypto market cap. This is a slight decrease of about 0.3% compared to the end of 2023.
Despite Bitcoin’s dominance in the market, some crypto exchange tokens like BGB and MX Token (MX) managed to outperform it. They witnessed gains of 434% and 248% respectively, according to TokenInsight’s data.
By comparison, Bitcoin’s value increased by over 200% from early 2023. The report also noted that HTX’s HT and OKX’s OKB tokens were the only two tokens whose market value fell, dropping by 75% and 53% respectively from the start of 2023.
