The prices of tokens associated with cryptocurrency exchanges have collectively dropped nearly 50% since early July as the broader market suffers from decreasing investor sentiment and significant downward macro pressure.
The AltDex Exchange Token Index (ALTEXC), a benchmark index for the industry’s leading exchange tokens, is currently trading at 53.30, down from its launch value of 100 on July 9. The ALTEXC is made up of the tokens associated with the major centralized and decentralized exchanges, including 0x (ZRX), Huobi Token (HT) and KuCoin (KCS).
The index’s largest constituent, Binance Coin (BNB), is down around 30% over the same period. BNB has been one of the top performing cryptocurrencies this year to date, driven by its significant international growth and routine token burns.
Recent reports suggest that trading activity on Coinbase has dropped around 83% since hitting all-time highs this past January. This trend is in stark contrast to the trading volumes found on Binance, the world’s most popular crypto exchange, which actually peaked in February and is down only around 30% from all-time highs.
All things considered, value investors who believe that the markets will return to previous highs might find exchange tokens as a good bet at current prices.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.