Nick Chong · 8 hours ago · 2 min read
The recent infatuation for most in the cryptocurrency market is with DeFi tokens and staking, with the sectors seeing strong growth in both technology and price values since the past month.
Buoyed by the interest is 0x protocol, the open, permissionless protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.
Surge in active ZRX wallets
Recent data shows active wallets reached an all-time high in two months since April 2020, while ZRX—0x’s native token—has jumped 14 percent at press time.
On-chain analytics firm Santiment tweeted Friday on 0x’s wallet addresses and the corresponding price bump:
$ZRX is seeing its highest amount of unique addresses interacting on its network in nearly two months as the price has jumped +14.7% in the past 24 hours. When a nearly identical DAA level hit back on May 7th, 2020, the price jumped ~+39% two days later. https://t.co/88SmWfgxsy pic.twitter.com/6nA1IJ8jZx
— Santiment (@santimentfeed) July 3, 2020
The metrics indicate wallet activity on the protocol has bolstered, presumably as public interest in staking application and passive incomes from cryptocurrency holdings grow.
Protocols like Compound and Balancer are leading the pack. The former returned over 800 percent to holders within two days of COMP issuance on June 18, eventually falling to $185-$190 level as on June 4.
Up for the taking is “risk-free” returns of 10-120%. While 0x is nowhere close to such returns—it’s a project not governed by complex eternal factors, such as MakerDAO’s zero-fee DAI sales in March.
After 0x’s beta staking launch in early-2020, holders have three main ways to lend their tokens. Previously, this was possible using some third-party protocols.
Staking frenzy catches on
Data on Staking Rewards shows ZRX “delegates” stand to gain an annual reward of 0.51% with a lockup period of 14 days. “Liquidity pool” owners get 3.45% on a similar lockup, with a risk rating of “moderate.”
On Compound, ZRX’s gross supply is over $42 million, up 0.4% since Friday. Gross borrow is $16 million, with borrowers charged 14% per annum. The table below shows:
For end-users, 0x will be the infrastructure of a wide variety of user-facing applications i.e. 0x Portal, a decentralized application that facilitates trustless trading of Ethereum-based tokens between known counterparties.
Meanwhile, ZRX is seeing some token selling after a rip above the 34-EMA on July 3. Sellers sold at the $0.42 level, but charts show there might be buyers waiting on the $0.37-$0.38 price band.