Cryptocurrency exchanges are fundamental infrastructure elements that play an important role in the cryptocurrency market ecosystem. Like other significant projects, exchanges and exchange protocols have their own native cryptocurrencies, which are used within the ecosystem of the exchange’s products, and can also reflect their financial status. In July, the KCS cryptocurrency — the native token of the KuCoin cryptocurrency exchange — turned out to be the best performing asset compared to its competitors.
The KuCoin (KCS) exchange token was trading at $7.36 at the beginning of the month. A week later, on July 7, its price doubled and amounted to $14.42. By the end of the month, the price of the KuCoin exchange token rose to $10.21. The overall increase in the price of KCS amounted to 38% in July.
The Binance (BNB) exchange token started the month with a price of $299. On July 7, it reached a record monthly value of $338. However, three weeks later its price dropped to $256. On the last day of July, the BNB token was trading at $332 — 11% higher than at the beginning of the month.
On July 1, the native cryptocurrency of the Huobi (HT) exchange boasted a price of $10.73. Unlike the KCS and BNB tokens, it did not demonstrate any significant growth and dropped in price to $7.57 on July 20, before returning to its starting values of $10.79 at the end of the month.
Thus, the KuCoin cryptocurrency was the most attractive for traders and investors in July from a dynamics and profitability standpoint.
Notably, the prices of native exchange cryptocurrencies were not affected by Binance’s scuffles with the many regulators around the world, and the peak values of the price of the KCS and BNB tokens correlate with the price of the second largest cryptocurrency – Ethereum (ETH). Ethereum started the month with a collapse from $2,265 on July 1 to $2,033 on July 2, before going into growth to $2,393 on July 7 with a subsequent decline. The second-largest cryptocurrency returned to the $2,400 mark only at the end of the month.
Meanwhile, Bitcoin spent most of the month in the price range of $34,840 to 34,430. After July 26, it entered a growth stage, ending the month with a price of $41,504. Thus, Bitcoin grew by 19.25% in July – less than the KCS altcoin, but more than the BNB and Huobi tokens.
The popularity of cryptocurrencies around the world continues to grow, resulting in an increase in the number of new users of cryptocurrency exchanges along with the volumes of financial transactions. Both factors can lead to an organic increase in the value of native exchange cryptocurrencies. Another reason that the prices of the KCS, BNB and HT tokens will depend on is the total capitalization of the cryptocurrency market. As evidenced by the data, cryptocurrencies are often correlated.
Image by Pexels from Pixabay