LEO: Why Hype Behind Bitfinex’s Coin Should Bother Investors
Bitfinex’s LEO coin has attracted attention, especially since its latest move to join the top-20 crypto list. Nevertheless, the token did not achieve that by its merit. It only managed to remain steady even with most assets in the crypto world struggling throughout May.
The Latest Hype
LEO can be the most boring token as far as price actions are concerned. As Ethereum and Bitcoin lost 10% and 1.5% in one week, LEO surged 1% within the seven days. Moreover, the alt remains unattractive when considering its use cases.
Bitfinex crypto exchange has LEO as its native token. Investors can use it to trade against several cryptos as a ‘quote’ token. Moreover, Bitfinex offers rewards and discounts for LEO trades.
Nevertheless, we cannot attribute the climb to LEO or its ecosystem. The alternative token retained its value even when all cryptos endured visibly crashes. Though that’s an achievement, it does not mean a bright future for LEO Token.
Moreover, that could be a one-time incident. Other exchange tokens such as FTX and WRX aren’t necessarily resistant to price declines. Also, May’s bloodbath affected these tokens.
Not Everything about the Coin is Bad
Nevertheless, not everything about LEO looks pessimistic. Glassnode data shows active addresses interacting with the token saw steady surges within the past few days, especially since early May. Though, that might be due to LEO attracting most traders with some stability amidst a crashing market.
Also, LEO’s NVT ratio remains low. The token hover at an impressive valuation in the blockchain’s transacted amount. NVT (Network Value Transaction) Ration is the market cap ratio to transacted volume in a specific timeframe.
Besides the mentioned factors, considering how investors ignored LEO during the market-wide surge in October last year might see the token on sluggish performance in the coming future. Nevertheless, the altcoin might hedge against other crashes as it did.
LEO lost around 16% since May started, whereas Bitcoin surrendered more than 30% during the timeframe. That should stand the time test (another cryptocurrency market crash plus future LEO developments.
Stay tuned for the latest crypto news.