What happened
Ethereum (CRYPTO:ETH), Tezos (CRYPTO:XTZ), and FTX (CRYPTO:FTT) are up 21.28%, 7.97%, and 29.12%, respectively, in the past seven days as of 10:42 a.m. EDT Saturday. They are now trading at $3,906.82, $5.45, and $63.38 apiece, respectively.
Ethereum is gaining a lot of traction in both the non-fungible token (NFT) industry and the decentralized applications (dapps) industry. But its competitor Tezos is rapidly catching up. On Sept. 2, EQIFI, a unified platform for decentralized finance (DeFi) products, selected Tezos as the platform of choice for developing regulatory-compliant DeFi solutions. Its first step was the launch of borrowing and lending services on the Tezos protocol.
Lastly, FTX tokens are surging after the namesake exchange acquired LedgerX, a Commodity Futures Trading Commission-regulated digital currency futures and options exchange. The move will enable FTX to offer such financial products to U.S. investors.
Image source: Getty Images.
So what
Investors are quickly discovering the tax benefits of NFTs, and its trading volume on the Ethereum marketplace opensea.io surpassed $1.78 billion in the last week alone. What’s more, there are now over 2,840 dapps utilizing the Ethereum network. The most popular ones involves borrowing and lending apps, where users can pledge their ETH and receive a stablecoin asset loan to cover their daily expenses while their investments continue to compound.
Furthermore, the Optimism Foundation, an organization dedicated to scaling Ethereum, incorporated Chainlink into its network. The move takes smart functionality to the next level by enabling them access to real-world data feeds and events.
As for Tezos, its partners include Alliance, a leading real estate developer in Manchester, U.K. that is utilizing the network to tokenize 500 million pounds worth of real estate (in ownership certificates). The network focuses on the development of digital securities, payments, and DeFi protocols. Its market cap has surpassed $4.85 billion. Like Ethereum, Tezos is a smart contract token, except with the added functionality of allowing users to vote on protocol amendments from developers.
Lastly, keep in mind that FTX is currently the third-largest cryptocurrency exchange in the world. However, due to the uniqueness of U.S. financial regulations, the platform couldn’t offer the same type of cryptocurrency derivatives as it does to its international consumers. The LedgerX acquisition could be a game changer. Trading volume on FTX.com amounted to about $15 billion in the past 24 hours, compared to just $271.8 million on FTX.us. FTX tokens act as collateral to enable margin trades on the exchange.
Now what
It may be hard to believe, but DeFi protocols were essentially unheard of last year. However, they have since grown to a market worth an estimated $162.6 billion. Say what you want about the lack of regulation, but its absence has inevitably accelerated innovation in this rising industry. What’s more, the combination of cryptography and smart contracts has proven to be a game changer, as it ensures the establishment of trust in otherwise unstable peer-to-peer networks. So keep an eye out for more developments from these amazing tokens.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
