GT and Other Utility Coins Rise Sharply: Analyze the Investment Trends of CEX Utility Coins

[TL；DR]:

Despite the volatility of the overall crypto market, CEX utility coins such as GT, BGB, and HYPE rose against the trend, showing strong market performance.

Utility coins have gradually expanded from the initial transaction fee discount tool to multiple fields such as asset management, lending, voting governance, and staking rewards. Their functions have been continuously enriched, which has enhanced their market cap and investment attractiveness.

Compared with the fluctuation trajectory of the previous round of Altcoin bull market, utility coins, as the “flagship product” of the exchange, their price trends often have a demonstration effect on the entire crypto market.

Introduction

Despite the recent decline in the Altcoin market, AI Agent and CEX (centralized exchange) utility coins continued to rise against the trend, becoming the focus of investors. It is worth noting that utility coins represented by GT, BGB, HYPE, etc., have shown a strong upward trend recently, which has attracted widespread attention from the market. This article will discuss in detail the reasons for the rise of these utility coins, their market performance and investment prospects, and provide valuable reference for investors.

HYPE’s Efficient Fission Drives the Utility Coin Sector to Rise Against the Trend

Recently, the overall CEX utility coins in the crypto market have shown a strong upward trend. Specifically, since the decentralized trading platform Hyperliquid launched HYPE, the market has been enthusiastic about chasing utility coins. Utility coins such as Gate.io’s GT and Bitget’s BGB have also continued to rise sharply, becoming the leading sector against the recent trend.

Source: CoinMarketCap

In fact, utility coins were originally created as a tool for discounting transaction fees on exchanges. With the continuous development of the crypto market, the functions of utility coins have gradually expanded to cover multiple fields such as asset management, lending, voting governance, and staking rewards, becoming a key tool for exchange competition.

Since entering the bull market in 2023, the market performance of utility coins has been particularly impressive. According to data from CoinMarketCap and other sources, utility coins such as BNB, OKB, and GT, have all achieved rapid growth in the past few years, especially the GT token, which has risen by more than 300% in the past year, becoming the focus of market attention.

Take HYPE as an example, Hyperliquid achieved efficient user fission and market promotion through large-scale airdrops and creative Dutch auction listing mechanism. The market valuation of it has been raised from Perp DEX to Layer1, which promoted the appreciation of Hyper and other tokens in the eco, and triggered market speculation on the entire utility coin sector.

Source: Gate.io

GT Breaks Through $17, and Its Utility Value Gradually Becomes Apparent

Among many utility coins, Gate.io’s GT token also highlights its high economic value consensus with its steady rise. As Gate.io’s utility coin and the native token of the GateChain network, GT has been in a long-term steady rise under the continuous layout of the Gate eco. From the same period last year to now, GT has increased by more than 300% this year, and has continued to break through the previous high since December.

As of the date of writing, GT’s highest price reached $17.749 and is currently trading around $17.290, with a market cap of $1.782 billion.

Source: Gate.io

As the Utility Token and Gas Fee payment token on Gate Chain, GT plays multiple roles in the platform eco. It can not only be used to deduct handling fees (including core functions such as currency trading, leverage, futures, financial management, lending, etc.), but also can upgrade the user’s VIP level on the platform and enjoy more handling fee discounts, exclusive customer service and activities and other privileges.

In addition, GT is an important staking token for Startup mining. By staking GT, users can obtain airdrops and staking interest on the tokens of the Startup section projects.

In a nutshell, users holding GT can not only obtain currency-based growth benefits, Startup mining benefits, and transaction fee deductions, but also obtain potential U-based benefits from GT’s highly deflationary mechanism.

Of course, the total amount of GT is only 300 million, and the GateChain on-chain fees will be continuously burned, and more than 174.1 million GT have been destroyed so far. This highly deflationary mechanism makes the value of GT continue to concentrate, and the long-term rise is expected to be significant.

Source: Gate.io

Finally, from the perspective of market cap, the current market cap of GT tokens is 1.7 billion, which is relatively small compared to other utility coins. However, considering the good operation of the Gate.io platform and the expansion of its user base, as well as the unique value support and deflation mechanism of GT tokens, the market cap of GT is expected to grow further in the future.

The Surge in Utility Coins May Usher in the Arrival of the Altcoin Season

In fact, the rise of exchange tokens is closely related to the development and growth of exchanges. With the continuous development of the crypto market, more and more investors have begun to pay attention to and participate in this field. In order to attract and retain users, exchanges have launched their own exchange tokens and increased the value and attractiveness of exchange tokens through a series of enabling mechanisms and preferential measures.

Unlike the last bull market, the enabling mechanisms of exchange tokens are now diversified. In order to enhance the value and attractiveness of exchange tokens, we have seen exchanges such as Gate.io launch a series of innovative products and services to empower exchange tokens. These enabling mechanisms include not only traditional methods such as transaction fee discounts and staking rewards, but also emerging areas such as IEO, DeFi, and lending.

Source: Gate.io

Through these diverse empowerment mechanisms, exchanges not only improve the liquidity and market demand of utility coins, but also provide users with more sources of income and investment opportunities.

Of course, the deflationary mechanism of repurchase and burning is still an important driving factor in the expectation of rising utility coins, which has been explained above.

In fact, compared with the fluctuation trajectory of the previous round of Altcoin bull market, the price trend of utility coins, as the “flagship product” of the exchange, often has a demonstration effect on the entire crypto market. When the price of utility coins rises sharply, it will attract more investors to pay attention to and participate in the crypto market, thereby driving up the prices of Altcoins and other cryptocurrencies.

Source: CoinMarketCap

In summary, CEX utility coins represented by GT are providing users with rich sources of income and investment opportunities through continuous functional expansion and empowerment mechanisms, and have a significant guiding role in the entire Altcoin market. We are also expected to see more value mining opportunities for utility coins in the future.