Cryptocurrency exchange tokens have largely bounced back from their lows and surged to new all-time highs as part of the ongoing market rally.
At the time of writing, Binance’s native token, BNB, is trading at $352, marking a 32% increase since November 2022 when the cryptocurrency exchange FTX declared bankruptcy, causing chaos across the entire cryptocurrency exchange ecosystem.
Moreover, BNB is trading higher than its previous high in June 2023, when news of the ongoing US Department of Justice (DOJ) investigation into Binance and the Securities and Exchange Commission (SEC) lawsuit first surfaced. Subsequently, the exchange settled with the DOJ for $4.3 billion, while the SEC lawsuit remains ongoing.
Exchange tokens, issued primarily by centralized organizations, allow users to reap trading benefits on exchange platforms. They can also be used to pay gas fees and participate in decentralized finance on blockchains created by centralized exchanges. Some exchange tokens also enable users to participate in platform governance activities.
Meanwhile, OKX’s native token, OKB, has also witnessed a 132% increase since November 2022, with a total increase of 3,227% since its launch in May 2019. On January 25, OKB experienced a significant flash crash, causing its market capitalization to plummet nearly $6.5 billion within minutes before fully recovering and reaching a new all-time high.
Similarly, Bitget’s exchange token, BGB, has surged to an all-time high of $1.03, with an annual increase of 159%. Last September, the exchange committed to establishing a $100 million fund called “EmpowerX” dedicated to blockchain, AI, and Web3 projects. Gracy Chen, CEO of Bitget, stated at the time that the company expects more investments, mergers, and acquisitions in the coming months as the centralized exchange continues to grow alongside regulatory changes.