• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
Breaking News: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan
Frax Finance FXS

Ethereum-Based Frax Finance (FXS) Is Up 64%, Is There Still Opportunity?

Jake Simmons by Jake Simmons
2 weeks ago
in Crypto
Reading Time: 3 mins read
Advertisement

In the last seven days, the Ethereum-based project Frax Finance is the second biggest winner within the top 100 cryptocurrencies by market cap. With a price increase of 64%, the FXS token is only behind Decentraland (MANA), which has surged 76% within the same period.

With the massive pump, Frax Share Token (FXS) has moved up to the 63rd position in the ranking by market cap and has seen a bullish rally since January 2. While the price was $4.09 on that day, FXS was at $9.06 at press time.

When the price briefly rose above $10 yesterday, the gain was over 140% since January 2. In the 1-day chart, FXS has broken the resistance zone established in May last year between $7.40 and $8.20 and is now facing resistance at $10.02.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
No Deposit 40 FREE SPINS at Wild.io on SIGN UP. Wheel of fortune, daily bonuses, 10 BTC in prizes monthly! Start Playing Now!

The first two attempts to break this resistance have failed for now, so a retest of the former resistance zone could be on the cards before the Frax token continues to rally. This would also be a much-needed correction, as the RSI on the daily chart is still at 83.

Frax FXS price
FXS price, 1-day chart | Source: FXSUSD on TradingView.com

The weekly chart confirms the extremely bullish picture for the FXS token. Once the price consolidates in the daily chart and subsequently breaks the $10.02 level, the way would be clear for a rise toward $13.

Related Reading: Altcoin Indexes Outperform Bitcoin, Small Caps Lead Market

The price level served as strong support in November and December 2021, before FXS rallied to an all-time high of $52.80 in January 2022.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Frax FXS price
FXS price, 1-week chart | Source: FXSUSD on TradingView.com

What Do The Fundamentals Of Frax (FXS) Suggest?

As NewsBTC reported, Frax Finance is benefiting from the liquid staking (LSD) narrative that emerged earlier this year and has since caused all LSD tokens to skyrocket. However, it is questionable whether the hype can continue for a longer period of time.

Related Reading: Shiba Inu Price Jumps By 21%, Here’s Why

As Jordi Alexander, CIO of Selini Capital explained, the Ethereum Shanghai hard fork could be in for a rude awakening:

ETH staking is going to explode after the Shanghai fork allows withdrawals- esp. now as Metamask integration makes it easy for Dummies. But LSD tokens are overvalued in anticipation of this – revenue is not going to change much, bc reward yields will plunge as staking % goes up.

But analyst Thor Hartvigsen doubts whether the same will be true for Frax Finance. The analyst shared five reasons via Twitter why Frax Finance will be a key player in DeFi this year.

The first reason is that Frax offers the largest APR among liquid staking providers at 6-10%, while its nearest competitor is only around 5%. The main reason for this difference is that frxETH can be used in DeFi applications such as the ETH/frxETH Curve pool.

The second reason Hartvigsen cites is that Frax Finance has made extensive improvements since its inception, in particular, it has improved its model (FRAXV2) and “has become a huge liquidity engine with a range of products.”

These include algorithmic market operations (AMOs), FraxSwap, FraxLend, FraxFerry (native bridge design), ETH liquid staking, and FPI (US inflation rate linked stablecoin).

¤ Frax Finance has been crushing it lately🔮

And with their growing ecosystem of DeFi products, $FXS has a TON of upside in 2023.

Here are 5 reasons why @fraxfinance will be a central player in DeFi this year and how you should be taking advantage of this 🧵 1/19 pic.twitter.com/epFMEgY4HF

— Thor Hartvigsen (@ThorHartvigsen) January 17, 2023

Third, it’s the AMOs that make Frax special, as they don’t just let collateral sit dormant, but use it in various DeFi applications. It also offers some of the highest stablecoin yields, which significantly strengthens FXS by increasing liquidity on Curve.

Last but not least, Hartvigsen points to Frax’s roadmap to reach a market cap in the trillions and become the risk-free underlying in DeFi. The analyst touts the Fed Master Account (FMA) as the biggest innovation:

A FMA is dollars deposited directly into the FED treasury’s ledger and grants access to US Treasuries. The FED gives a status on the ledger once a day which essentially is the ultimate audit.

This would make FRAX one of the closest things to a ‘risk free dollar’. It’s a very ambitious goal however and likely a few years away.

Featured image from Inside Out, Charts from TradingView.com

Tags: FraxFrax FinanceFXS
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Jake Simmons

Jake Simmons

Related Posts

Crypto Price Manipulation Binance

Coinbase Exec Accuses Binance Of Crypto Price Manipulation

1 week ago
XRP vs Cardano ADA

XRP Vs. Cardano (ADA), Which Is The Better Investment In 2023?

2 weeks ago
Lazarus Group

Lazarus Group Transfers $64M ETH From Harmony Bridge Hack

2 weeks ago
FTT

FTX’s FTT Token Spikes 43%, A Revival In The Works?

2 weeks ago
Ripple XRP

Crypto Market Will See A Bloodbath If Ripple Loses To SEC, Gasparino Says

3 weeks ago
Bitcoin crypto market

This Week In Bitcoin And Crypto: Key Dates To Watch

3 weeks ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Metaspins

Metaspins

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
Coinplay

Coinplay

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

Arat Hosseini Unveiled as Next Superstar NFT in World League Live

February 1, 2023

Big Eyes Coin Hits £20 million in Presale: Feline Friendly Crypto Dwarfs Competition

February 1, 2023

B2Broker Unveils Integrates Match-Trader into Its White Label Liquidity Offering

February 1, 2023

Optimism (OP) reaches all-time high, Coinbase fined 3.3 million euros by Dutch central bank and could Snowfall Protocol (SNW) launch earlier than the official date as investors pile in to buy up remaining supplies

February 1, 2023

Spike in Transactions causes Polygon (MATIC) price to Surge, Ethereum (ETH) loses 2.94%, and Snowfall Protocol (SNW) sells more than 90% of their phase 3 supply

February 1, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.