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Frax Finance (FXS) Soars 23%, Here's What's Powering Growth

Mon, 01/16/2023 - 15:36
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Godfrey Benjamin
Frax Finance joined altcoins that soared today after recording 23% upsurge
Frax Finance (FXS) Soars 23%, Here's What's Powering Growth
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Frax Finance (FXS) is jumping by a mile as community optimism bordering on the growth metrics of the protocol has sent shares soaring to $8.83, up 23.29% over the past 24 hours at the time of writing, according to data from CoinMarketCap. Riding on the contagion in the broader digital currency ecosystem, Frax Finance has pushed its own personal limits and is up by over 52.74% in the trailing seven-day period.

Frax Finance is the first fractional-algorithmic stablecoin system. The protocol is open-source, permissionless and entirely on-chain, and at the moment, it is currently implemented on Ethereum. According to updates published on Twitter by popular investor and analyst @0xChaos, the FrxETH total supply hit a new milestone of 61,339 atop 20.3% over the past 24 hours.

The FrxETH supply showcases the total number of ETH coins that are present in the Frax Finance ecosystem. The FrxETH token is designed such that the price of one of these tokens always comes off as that for 1 ETH.

The milestone measures the growing popularity and embrace of Frax Finance, particularly with respect to the fact that it churns out more competitive yields to its staking offerings.

Fragile FXS fundamental

Though there is hyped sentiment as it concerns Frax Finance and its potential to see impressive new protocol milestones, it can still be judged that the token is growing based on a fundamental that is so fragile.

Growth in staked tokens or pegged crypto assets is a function of the hype in the broader industry, which may or may not last for long. Despite the hype, though, the fact that the Ethereum Shanghai Upgrade is just around the corner and will be releasing the Ethereum tokens staked on the proof-of-stake (PoS) protocol, more awareness will shift toward the core products being publicized by Frax Finance.

With the current traction, Frax Finance might become more relevant in the grander scheme of things.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.