The vast majority of crypto projects are in the red this week after a market-wide price dip on Tuesday and Wednesday, but one decentralized finance (DeFi) altcoin is bucking the trend.
Frax Shares (FXS) is one of the two tokens employed by Frax Finance, a stablecoin system where cryptocurrency is partially stabilized algorithmically and partially backed by collateral.
The FXS token, the 65th-ranked crypto asset by market cap, is used as a store of value and in the governance of the Frax protocol. FXS is trading at $33.01 at time of writing, up more than 47% in the past seven days.
The Block reported this week that the project is considering building reserve collateral made up of billions of dollars worth of other major layer-1 (L1) cryptocurrencies.
Explains Frax Finance founder Sam Kazemian,
“Keep in mind, this strategy means every L1 chain (including BTC/lightning) will have an incentive to have FRAX stablecoins flowing through their economy as that creates a central bank-size market demand for their L1 token.”
Frax wouldn’t be the first project to build up such a reserve.
Stablecoin issuer Terra (LUNA) is moving forward with plans to accumulate a massive $10 billion trove of Bitcoin (BTC) reserves, according to Do Kwon, Terra founder and CEO.
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
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.
Featured Image: Shutterstock/Space creator/Natalia Siiatovskaia
The post Ethereum-Powered DeFi Altcoin Explodes 47% in One Week, Outshining Bitcoin and Crypto Markets appeared first on The Daily Hodl.