The cryptocurrency market has significantly improved within the past few days. As anticipated, that means a positive impact on investor participation and presence. The recovering crypto prices triggered volume revivals. As a result, cryptocurrency exchanges like FTX secure increased use cases in a developing marketplace.
FTX and Reddit
Recently, Reddit partnered with FTX to launch its much-anticipated tokenized Community Points. Meanwhile, it selected Arbitrum Nova as a gateway to bring Community Points to the ETH mainnet.
For the unskilled, Reddit Community Points measure user communities’ reputation. Users can transact these points on-chain, but they’ll need Ether for gas fees for such transactions. They can achieve that via FTX pay. It allows individuals with insufficient capital to buy more with the service.
That means a lucrative opportunity for the exchange as it can attract new people via Reddit’s enormous community, improving its presence within the marketplace. For now, market players know FTX ranking behind Binance and Coinbase within the crypto exchange market. Meanwhile, it seems ready to outshine the latter as it already exceeds it in various ways.
FTX has enhanced liquidity and enjoys substantially higher weekly clients than Coinbase, nearly twice. Furthermore, the overall volume traded on the exchanges is somewhat neck to neck. Thus, success in the Reddit service could see FTX flipping Coinbase.
That would see FTX’s native, FTT, riding upside waves. Remember, FTT has struggled to secure a bullish cadence since the June crash. The alternative token has gained only 38% for nearly two months, lower than one of the worst performers lately, Cardano.
However, FTT remains somewhat secure from massive declines on its charts as the asset’s market value stays pretty healthy. Also, it didn’t dip into the negative territory even during the token’s lowest moments.
Meanwhile, Coinbase also struggled during the crypto winter. The leading crypto exchange had to announce job cuts as the market sell-off intensified. Also, its stock deteriorated amid pessimistic markets. Maintaining such stances would see FTX flipping it with fewer hurdles. However, the Reddit deal remains the primary determinant.