Why Ethereum, Tezos, and FTX Are Soaring This Week

What happened

Ethereum (CRYPTO: ETH), Tezos (CRYPTO: XTZ), and FTX (CRYPTO: FTT) are up 21.28%, 7.97% and 29.12%, respectively, over the past seven days at 10:42 a.m. EDT on Saturday. They are now trading at $ 3,906.82, $ 5.45 and $ 63.38 each, respectively.

Ethereum is gaining popularity both in the non-fungible token (NFT) industry and in the decentralized applications (dapps) industry. But its competitor Tezos is quickly catching up. On September 2, EQIFI, a unified platform for decentralized finance (DeFi) products, selected Tezos as the platform of choice for the development of regulatory compliant DeFi solutions. Its first step was to launch borrowing and lending services on the Tezos protocol.

Finally, FTX tokens increase following the acquisition by the exchange of the same name of LedgerX, a digital futures and options exchange regulated by the Commodity Futures Trading Commission. This decision will allow FTX to offer such financial products to US investors.

Image source: Getty Images.

So what

Investors are quickly discovering the tax benefits of NFTs, and its trading volume in the Ethereum opensea.io market has exceeded $ 1.78 billion in the last week alone. Additionally, there are now over 2,840 dapps using the Ethereum network. The most popular involve borrowing and lending apps, where users can pledge their ETH and receive a loan of stable assets to cover their daily expenses while their investments continue to pile up.

Additionally, the Optimism Foundation, an organization dedicated to scaling Ethereum, has incorporated Chain link in his network. The move takes smart functionality to the next level by giving them access to real-world data streams and events.

As for Tezos, its partners include Alliance, a leading real estate developer in Manchester, UK, which uses the network to tokenize £ 500million of real estate (in certificates of ownership). The network focuses on the development of digital securities, payments and DeFi protocols. Its market capitalization has exceeded $ 4.85 billion. Like Ethereum, Tezos is a smart contract token, except for the additional functionality that allows users to vote on developer protocol changes.

Finally, keep in mind that FTX is currently the third largest cryptocurrency exchange in the world. However, due to the uniqueness of US financial regulation, the platform could not offer the same type of cryptocurrency derivatives that it does to its international consumers. The acquisition of LedgerX could be a game-changer. Trading volume on FTX.com has been around $ 15 billion in the past 24 hours, compared to just $ 271.8 million on FTX.us. FTX tokens serve as collateral to enable margin trading on the exchange.

Now what

It might be hard to believe, but DeFi protocols were essentially unknown last year. However, they have since grown into a market worth an estimated $ 162.6 billion. Say what you want about the absence of regulation, but its absence has inevitably accelerated innovation in this booming industry. Additionally, the combination of crypto and smart contracts has proven to be a game-changer as it ensures trust is built in otherwise unstable peer-to-peer networks. So keep an eye out for further developments of these amazing tokens.

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Zhiyuan Sun owns shares of Chainlink and Ethereum. The Motley Fool owns shares and recommends Ethereum. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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