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 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 each, respectively.

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

Finally, FTX tokens are rising after the eponymous exchange acquires LedgerX, a Commodity Futures Trading Commission-regulated digital currency futures and options exchange. This move allows FTX to offer such financial products to US investors.

Image source: Getty Images.

And then

Investors quickly discover the tax benefits of NFTs, and trading volume on the Ethereum marketplace opensea.io surpassed $1.78 billion in the past week alone. In addition, there are now more than 2,840 dapps using the Ethereum network. The most popular are the lending and borrowing apps, where users can pledge their ETH and receive a loan of stablecoin assets to cover their daily expenses as their investments continue to grow.

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

As for Tezos, its partners include Alliance, a leading property developer in Manchester, UK, who uses the network to symbolize £500m worth of real estate (in certificates of ownership). The network focuses on the development of digital securities, payments and DeFi protocols. The market cap has exceeded $4.85 billion. Like Ethereum, Tezos is a smart contract token, except with the added functionality of allowing users to vote on developers’ protocol changes.

Finally, keep in mind that FTX is currently the third largest cryptocurrency exchange in the world. However, due to the uniqueness of U.S. financial regulation, the platform was unable to offer the same type of cryptocurrency derivatives as it does to its international consumers. The acquisition of LedgerX could be a game changer. Trading volume on FTX.com was 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.

What now

It may be hard to believe, but DeFi protocols were essentially unheard of last year. However, since then they have grown into a market worth an estimated $162.6 billion. Say what you will about the lack of regulation, but its absence has inevitably accelerated innovation in this emerging industry. In addition, the combination of cryptography and smart contracts has proven to be a game changer as it establishes trust in otherwise unstable peer-to-peer networks. So keep an eye out for more developments of these amazing tokens.

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Zhiyuan Sun owns shares of Chainlink and Ethereum. The Motley Fool owns shares of and endorses 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.