The Rise of Platform Tokens: Exchanges Become a Safe Haven in the Crypto Market

Recently, platform tokens from cryptocurrency exchanges have shown a significant upward trend. Amidst the overall market turbulence and frequent declines in Bitcoin and altcoins, the strength of platform tokens stands out remarkably.

The logic behind this is not complicated:

1. Platform profitability is directly linked to trading activity. The more turbulent the market, the more frequent the trades, leading to higher platform fee income, which naturally benefits platform tokens.

2. Burning mechanisms and value support. Many exchanges regularly buy back and burn platform tokens, continuously creating a scarcity effect.

3. Market risk aversion psychology. When funds lack confidence in altcoin projects, they flow into tokens issued by leading exchanges, serving as both a 'value anchor' and a defensive choice.

This wave of increase reflects not only the profit expectations of the platforms but also a shift in market sentiment: during the phase of lingering between bear and bull markets, platform tokens often serve as the first 'weather vane' to indicate the movement of funds.

For investors, the rise of platform tokens reminds us that in the crypto world, it is not just about on-chain projects and Bitcoin itself; the exchanges that hold liquidity are the true winners.