Day of the DEX: Why Kyber Network and Bancor Just Exploded Hand in Hand
The past twenty-four hours saw massive gains for Kyber Network (KNC) and Bancor (BNT) – two decentralized exchange (DEX) projects in the market cap top hundred.
Kyber Network spiked 75% at its peak early on Saturday morning, while Bancor also gained a chunky 40% overnight.
So why did these two decentralized exchanges undergo such radical price pumps in the last day or so?
It’s Got Something to do With Enjin Coin (ENJ)
Enjin Coin’s price pump has been all over the news since the first of the Samsung Galaxy S10 rumours landed a couple of weeks ago. Yesterday it was confirmed that ENJ would be supported by the S10, and the coin price went on a crazy +100% run on Friday night.
Now, if you look at the tokens available for trade on Kyber Network and Bancor, you see that one particular coin is at the top of their trading charts – Enjin Coin.
On Kyber Network, ENJ is the most traded token on the entire platform with around one fifth of the total daily turnover. Meanwhile, over on Bancor, ENJ is the second most traded token in the last twenty-four hours, just behind the Bancor (BNT) token itself.
When ENJ exploded at the start of the weekend, many short-medium term investors would have been trying desperately to jump on the bandwagon. It could make sense that on a quiet Friday night when people are away from their multi-screen trading desks, more people choose to use the Ethereum-based wallet that’s been gathering dust on their smartphone instead.
Perhaps this flurry of activity alerted even larger investors looking to further capitalize on Enjin’s growth – and what better way than by investing in two of the easiest ways to buy ENJ currently in existence.
Bancor and Kyber Network are both free apps that can be found in most ETH-based wallets, and transactions can be made with ZERO identification or KYC. I’ve tested them out personally, and even for a cautious individual like myself, the process was simple and stress-free. Which leads me onto the next reason why these two decentralized exchanges just exploded without warning.
Investors Are Looking for the Same, but Cheaper!
In yesterday’s analysis of Enjin Coin’s growth, I suggested that the Asian trading influence had made itself felt on WAX – another blockchain gaming project that’s somewhat similar to Enjin. The idea is that traders in the east like to find similar, but cheaper investment prospects to whatever major asset is pumping at the time.
With that in mind, one can’t help but wonder whether the pumps by Kyber and Bancor are a delayed reaction to the spectacular growth recorded by Binance Coin recently – which itself is in the process of unveiling its own decentralized exchange.
Call me over-enthusiastic, but with this kind of money being thrown around so easily and speculatively, I’m starting to get the feeling that we may be over the worst of the bear market.
Kyber Network Price – KNC/USD
From $0.183840, the value of KNC climbed to $0.322859 overnight. That’s 75% growth for KNC before it pulled back to the $0.29 range, where it remains at time of writing. KNC’s daily volume was the highest recorded in eleven months at $67 million.
Bancor Price – BNT/USD
These charts may look symmetrical but BNT’s gains were slightly less than KNC at 40%. This saw Bancor’s token move from $0.530998 up to $0.743504, before a pullback to the $0.67 range.
Also like Kyber, Bancor just recorded its highest daily trading volume for eleven months – since the April altcoin pump of 2018.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.