Bittrex Global GmbH listed new DeFi tokens this week:
- UMA (UMA)
- Aave (AAVE)
- Balancer (BAL)
- REN (REN & renBTC)
- Kyber Network (KNC)
- Band Protocol (BAND)
- YF Link – (YFL)
Bittrex is a Liechtenstein-based crypto exchange. The company moved its headquarters from Malta to Liechtenstein in 2019 and launched as Bittrex Global. One of the reasons for this move, according to a company representative, was the favorable regulatory environment the Liechtenstein government created with its Blockchain Act, which was introduced in January 2020. The regulatory framework improves legal certainty for investors and has attracted many blockchain businesses to move to Liechtenstein.
Bittrex Global now allows its users to trade all of the above DeFi tokens with no trading or gas fees until 2021. Bittrex said they decided to enable free trading for DeFi tokens because the asset class has seen massive growth in 2020.
“The last year has seen huge growth in DeFi as an asset class and a number of significant milestones completed,” said Bittrex Global’s CEO Tom Albright. “As the asset class matures and more institutional and professional investors look at the fundamentals, we are likely to see increased demand and higher trading volumes for DeFi in 2021.”
DeFi is developing into a megatrend
Bittrex’s decision to list DeFi tokens mirrors the latest trends in the crypto industry. DeFi tokens are increasingly gaining traction and become more popular among traders. DeFi stands for “decentralized finance” and includes tokens of apps that build financial services on a blockchain, for example, decentralized exchanges or lending platforms.
Aave, for example, is a crypto lending platform that enables users to get a loan in one cryptocurrency while depositing another crypto asset as collateral. That’s beneficial for users who, for example, don’t want to sell their Bitcoin but need fiat money or stablecoins. They can then deposit their Bitcoin as loan collateral and take a loan in USDT, which they can then use for other purposes. On the other hand, crypto lending platforms offer users a way to deposit their cryptos in savings accounts and receive interest.
Such decentralized finance applications will likely keep gaining momentum as they supply liquidity into the crypto ecosystem and generate investment opportunities for passive investors.
“We’re really excited about what we’re seeing in the space and want to see these DeFi projects grow and help them build stronger platforms through increased adoption,” says Albright. “Offering free trading fees on DeFi through the end of the year helps expose these projects to our millions of users.”
As DeFi platforms grow, the liquidity of their native platform tokens grows as well. Also, the increased demand for those tokens has led to increasing prices and put them on the map of traders and long term investors.