Exchange Token BGB Has Made 3,000% Since the Launch – New ATHs on the Horizon
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It pays to be early in crypto. But if you can’t be early, you can still make money from being late provided you’re not the last one in the door.
No one wants to exit liquidity for tokens that have pumped massively, making their early adopters wealthy while leaving laggards to fight over single percentage-point gains.
Just like exchange tokens such as BNB and KCS, Bitget’s BGB has pulled four-figure profits for those with the luck or wisdom to buy early and ‘hodl’ hard.
The asset has increased by over 3,198% since its launch, according to CoinGecko. But what’s interesting about BGB isn’t so much the journey it’s completed but the one which lies ahead.
A closer look at its chart suggests there’s plenty more still in the tank.
The trend is your friend
It’s easy to glance at a chart and infer project strength from the rocket ride of its token. However, monumental gains or losses must be viewed against the context of the broader crypto market at the time.
After all, anyone can make money in a bull market ven garbage will go up. It’s during less confident economic times that true tokens are forged.
When examined in this context, BGB’s performance for the year to date has been impressive, to put it mildly. It’s been a year of ups and downs and of deep uncertainty, both from a regulatory perspective and an economic one.
With rumors of Silk Road and Mt. Gox Bitcoins flooding the market in the near future, coupled with a sluggish global economy, it’s no surprise that BTC is up just 65% for the year to date.
Over the same period, BNB is up a mere 26%. Remarkably, BGB is up 160% over the same period.
The performance of BGB during a capricious 2023 can be attributed to a number of factors.
Firstly, there is the strength of its parent exchange, Bitget, which has continued to grow its user base and expand its trading products, all of which have filtered down into increased demand for BGB.
The fact that the majority of the liquidity for BGB can be found on Bitget and Bitfinex two tier-one exchanges has also supported stability, with the token becoming a low-volatility staple for traders to seek refuge in during market uncertainty.
This has effectively served to limit the downside to holding BGB, while retaining all of the upside.
In other words, when the market kicks up a notch and confidence floods back, BGB can run with the best of them.
How high before all-time high
There’s another reason why smart money is banking on BGB outperforming like-for-like assets such as native exchange tokens, as well as crypto blue chips like BTC and ETH distance from ATH (all-time high).
As of writing, Bitcoin is 60% down from its ATH, and Ethereum, 62%. BGB, in comparison, is a mere six percent off the all-time high it set just three months ago.
As even an entry-level crypto trader will attest, nine percent is a day’s gains.
It’s not unrealistic, therefore, to expect BGB to push higher and make multiple all-time highs as the year progresses, provided the market structure stays intact.
So, where does all of this leave iron-handed BGB holders? Those who bought early, or failing that, made up for lost time by maximizing their exposure to BGB, face a quandary.
On the one hand, they’re in handsome profit and could walk away at any time with multiple Xs to their name.
On the other hand, if recent history is anything to go by, traders should fade BGB at their peril.
As memecoin season has reached fever pitch, Ethereum network fees have hit high double digits and stubbornly stayed there for weeks.
Against this backdrop of unaffordable DEX (decentralized exchange) trading that’s priced out small-to-medium-sized traders, CEXs (centralized exchanges) have been a veritable oasis of calm.
Exchanges such as Bitget have prospered thanks to their immunity to network fee variance and ability to operate smoothly through the chaos and calm.
In this milieu, you wouldn’t want to bet against the best CEX tokens outperforming the rest of the market.
And in particular, you wouldn’t want to bet against BGB, the unassuming darling of 2023.
Christopher Owen is a passionate Bitcoin fan from California. He developed his own tools to track and predict changes in Bitcoin price after the fall of Mt. Gox. He is trading some stocks and digital currencies for experimental purposes and hunts the most interesting cutting-edge technologies’ use cases in investing and finance.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Author: Christopher Owen
