In-depth analysis of the investment potential of platform tokens: which platform token is more worth holding?

Author: Luojia Micro

As Bitcoin breaks through the $38,000 mark, the crypto market is rapidly emerging from a two-year bear market. The upcoming Bitcoin halving and the potential approval of Bitcoin spot ETFs signal that the crypto industry may soon welcome an unprecedented bull market. So, how can we better seize this wealth opportunity in the crypto industry?

Currently, one of the most profitable areas in the crypto industry is trading platforms, and platform tokens are one of the most important tracks for crypto assets. During the last bull market, Bitcoin surged from $5,021 to a historical high of $67,000, an increase of about 1,200%. In contrast, the growth of platform tokens from major exchanges far exceeded that of Bitcoin. Taking Binance, the leading trading platform, as an example, its platform token increased approximately 60 times, while other trading platforms' tokens such as OKB, GT, KCS, etc., saw increases of over 20 times. Therefore, positioning in platform tokens at the beginning of a bull market is a very wise choice, as it not only has high certainty, relatively low risk, but also enormous future appreciation potential.

So, how do we choose a platform token? Which platform token has greater appreciation potential? Below, we will conduct a comprehensive comparative analysis from the perspectives of the trading platform's fundamentals, platform token price trends, and the additional value of platform tokens. By gaining an in-depth understanding of the operational conditions, market share, and other fundamental factors of various trading platforms, as well as the historical price trends and additional value of platform tokens, we can better assess the appreciation space and potential of each platform token. At the same time, we can also pay attention to some innovative and promising new platforms and platform tokens. Ultimately, through comprehensive analysis and consideration, we can select platform tokens with greater appreciation space and potential for investment.

Leading Exchanges Weakening, Second-Tier Platforms Growing Significantly

As the saying goes, "It's good to lean against a big tree for shade." This saying is equally applicable in the cryptocurrency field. The value of platform tokens is largely determined by the fundamentals of the trading platform behind them. Over the nearly two years of bear market, the landscape of crypto platforms has changed significantly. Taking Binance as an example, at the beginning of 2023, its trading volume and market share once reached as high as 60%, demonstrating a clear leading advantage. However, according to a recent CEX report released by 0xScope, Binance's market share has dropped to 51% and may continue to decline.

At the same time, some second-tier exchanges such as Bitget and Bybit have emerged rapidly, experiencing significant growth. For instance, Bitget's market share was only 2% at the beginning of 2023, but it has now risen to 7.0%, making it one of the fastest-growing trading platforms in 2023 and firmly ranking among the top four trading platforms globally.

Through comparison, we can see that while the top trading platforms are powerful, they are gradually weakening, whereas rapidly developing platforms like Bitget and Bybit have risen against the trend in the bear market by adopting more proactive listing strategies and providing quality product services, capturing more value for their platform tokens. Therefore, for investors, choosing platform tokens from growth-oriented trading platforms like Bitget and Bybit will be more valuable for investment.

Performance of Major Platform Tokens in 2023

The price trend of platform tokens is the most intuitive indicator reflecting their investment potential. From the chart below, it is clear that BNB, as the industry leader, has only achieved a 2% increase this year, while Kucoin and Huobi have seen significant declines. This aligns with a basic principle: the operational status of the platform directly affects the price of the platform token. Similarly, among the standout cryptocurrencies, we can also see this viewpoint validated. Taking Bitget, which has rapidly emerged in 2023, as an example, its platform token BGB has risen by 168% since the beginning of this year, even surpassing Bitcoin (BTC has risen by 107% since the beginning of the year). BGB has become one of the best-performing platform tokens this year and is one of the few platform tokens that can outperform Bitcoin in terms of growth.

It is worth noting that bear markets often test the quality of cryptocurrencies. Those that can rise against the trend in a bear market often exhibit stronger appreciation potential when a bull market arrives. Currently, BGB is in an upward phase with strong momentum. Once the bull market arrives, its upward trend will be magnified, and the momentum will be even more robust.

The Power of Compound Interest: The Additional Value of Platform Tokens

High-quality assets not only need to have appreciation potential but also need to create additional income. Compared to other cryptocurrencies, platform tokens have a unique advantage in that they can create additional value for holders. Holders of platform tokens can participate in various trading platforms' LaunchPads, which is the main manifestation of the additional value of platform tokens. So, which platform token generates greater additional value? We can look at the following two aspects.

First, the return rates of LaunchPad projects. According to data from CryptoRank, the LaunchPad projects of leading exchanges have performed well since their launch in 2023, with average maximum returns exceeding 10 times. Taking Bitget as an example, the average historical maximum return rate of all its LaunchPad projects is 41.9 times, ranking first; OKX and Bybit follow closely, with average historical maximum return rates of 35.6 times and 33.3 times, respectively.

Second, the number of new projects on LaunchPad. Since the beginning of 2023, Bitget's LaunchPad has launched 6 projects, averaging a new project every 1.5 months. Binance follows closely with 3 LaunchPad projects, averaging one new project per quarter. Other trading platforms have been more conservative, with fewer new projects on their LaunchPads, thus limiting the additional income that their platform tokens can generate.

In summary, Bitget's LaunchPad not only offers higher return rates but also provides more new projects, making holding BGB undoubtedly capable of creating more additional value. Furthermore, holders of BGB can also participate in Bitget's Launchpool, staking, and receive new project airdrops for income. Although these returns are currently limited, once the bull market arrives and the snowball effect occurs, it will create enormous profit space for holders. Therefore, from the perspective of the additional value of platform tokens, Bitget's platform token BGB has significant investment potential and imaginative space.

Conclusion

In summary, holding platform tokens during a bull market can bring higher returns and additional income opportunities. Recently, some rapidly developing second-tier platforms like Bitget and Bybit are worth paying attention to. Compared to leading platform tokens, these second-tier platform tokens have greater imaginative space. Taking Bitget as an example, its market share is 7%, about 1/7 of Binance's (51%), while the market capitalization of BGB is only $600 million, approximately 1/70 of BNB's market capitalization ($38 billion). From this perspective, BGB still has at least 10 times the growth potential, and its price is undervalued.

Therefore, when investors choose platform tokens, they should comprehensively consider and evaluate the fundamentals of the platform behind them, as well as the historical price trends and additional value of the platform tokens, to achieve greater returns at a lower cost.