Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Fresh institutional and retail investor inflows into the cryptocurrency market have led to bull market conditions for many top tokens from blue-chips like (BTC) and Ether (ETH) to more recently established DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked sub-sector of the market but they have been performing exceptionally well in 2021 as increases in trading volumes results in a larger pool of fees to collect when the exchange’s native token is used for settlement. Native exchange tokens are also typically used as the base pair for funding new listings and token buybacks.