Balancer Token’s Release Provokes Momentum For the Defi Space
Weekly Analyst Thoughts
Cryptocurrency enthusiasts have predicted that most future trading will take place on decentralized exchanges, such as Uniswap, instead of centralized exchanges, like Coinbase. Thus far, this prediction has only come true for Ethereum and ERC-20 tokens, which are the standard tokens used for Ethereum smart contracts. On the Ethereum blockchain platform, there is a thriving decentralized exchange (DEX) ecosystem with over $56 million dollars in liquidity pools, fueling the development of decentralized exchanges like Balancer.
Last week, Balancer released their governance token (BAL) and it has exploded in value. As of last Thursday, BAL was up 157% since its release on the main net last week. While BAL has had tremendous success thus far, one of the problems with the BAL token is its’ inaccessibility. When searching for BAL in Uniswap, nothing appears. Instead, investors must navigate to Etherscan.io, a block explorer, find the token contract address and paste it into Uniswap, allowing BAL to appear and be accessible for trade. BAL can also be found in a DEX aggregator called 1Inch Exchange.
The success found by the Bal and COMP tokens in the past two weeks signify significant momentum being gained in the Defi space. Investors must make note of these as well as future developments in the Defi space as these platforms are driving the future of cryptocurrency trading.