Decentralized exchange (DEX) Kyber Network’s KNC token is rallying hard amid dull action in the broader market.
- CoinDesk 20 data show 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 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 Maker 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.
- While KNC has chalked up double-digit gains in the past 24 hours, prominent cryptocurrencies such as bitcoin and ether have gained 3% to 5%. Meme-focused cryptocurrency dogecoin has rallied by 35%.
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