Decentralized Exchange Kyber Network's KNC Token Jumps
"Kyber Network has underperformed its peers, still trading at relatively low market capitalization," one analyst said.
Decentralized exchange (DEX) Kyber Network's KNC token is rallying hard amid dull action in the broader market.
- CoinDesk 20 data shows the token increased almost 40% to $2.21 in the past 24 hours. The price hit a two-week high of $2.38 earlier today.
- The rally takes KNC's market cap back above $400 million. However, it still ranks in the mid-20s on the list of most prominent decentralized finance (DeFi) protocols by market value, according to Messari.
- At press time, Uniswap is the biggest DeFi project, with a market capitalization of $15.6 billion. Aave and MakerDAO rank second and third at $4.86 billion and $3.56 billion.
- "Kyber Network has underperformed its peers, still trading at relatively low market capitalization," Denis Vinokourov, head of research at Synergia Capital, said, adding that the token is relatively cheap.
- In other words, KNC is likely catching up with its DeFi peers in the wake of positive fundamental developments.
- Kyber's dynamic market maker (DMM), aimed at bringing greater flexibility and high capital efficiency, went live in early April.
- The planned migration to the new KNC token to boost governance power, create multiple streams of utility, and support new liquidity innovation is proceeding smoothly.
- Exchanges like Binance, KuCoin, Gateio, UpBit and Bithumb are supporting the new token, while Huobi, OKEx, and Coinbase are making preparations for the transition.
- "The token migration will permit a wide range of upgrading capabilities as we advance, all to promote capital efficiency with dynamic fees and amplified liquidity," Vinokourov said.
- With dynamic fees, fees increase during high market volatility and decrease during low market volatility to encourage trading and volume.
- According to the official blog, such a structure helps optimize returns for liquidity providers and reduce the impact of impermanent loss – a temporary loss resulting from volatility in a trading pair.
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