As the project gears up to deploy its eagerly awaited beta edition next week, the DXP utility token of the Arbitrum-based decentralised trading platform (DEX) Vela Exchange has launched a strong rise.
According to cryptocurrency price tracker CoinGecko, DXP’s price increased by around 50% in the last day and has more than doubled since Wednesday am, when it was selling for less than $1.
Before switching its development to Arbitrum, an Ethereum layer 2 blockchain, Vela Exchange was formerly known as Dexpools on Ethereum. The trading platform supports peer-to-peer over-the-counter (OTC) trading so that traders can avoid slippage and frontrunning as well as spot and perpetual futures trading.
According to the project’s website, the platform’s beta version launches for registered testers with early access on January 31 and becomes accessible to the general public on February 7.
The listing of the similar utility token VELA under a different name on Camelot, another DEX on Arbitrum, on Thursday attracted attention to Vela’s token and may have helped the market rally. Holders of DXP on Ethereum and Metis can use a bridge to swap their tokens for free one-to-one to VELA on Arbitrum.Investors in DXP or VELA can profit from a portion of the platform’s trading fees. DXP and VELA were both trading at $2.19 at the time of publication.
Traders are placing bets on Vela taking a piece of Arbitrum’s expanding DEX activity and maybe challenging the hegemony of the GMX derivatives exchange. Perpetual-focused GMX became a market leader last fall, at one point outpacing UniSwap, the largest DEX, in daily trading fee revenue.
Gains Network, a DEX that was initially introduced on Polygon before being expanded to Arbitrum, produced more than $1.5 billion in trading volume there after almost a month of operation, according to CoinDesk. Early in 2023, Trader Joe, the leading DEX on the Avalanche blockchain, will also launch on Arbitrum.