This post was originally published on this site.
A few unique cryptocurrencies are bucking the broadly bearish trend in crypto.
This past week, LEO Token (LEO 2.90%) was among the leading cryptocurrencies in the digital assets space. Surging 9.8% over the past 7 days (as of 4:00 p.m. ET), LEO’s weekly move appears to be tied more to the network’s underlying fundamentals than purely speculative capital flows. That’s good news for investors looking for utility-generating projects.
Today’s Change
(-2.90%) $-0.25
Current Price
$8.41
Key Data Points
Market Cap
$7.8B
Day’s Range
$8.21 – $8.85
52wk Range
$6.23 – $10.14
Volume
1.4M
Quietly surging to the 13th spot in the global crypto market capitalization rankings this week, LEO has seen spikes in exchange usage, fee revenue, and token buybacks. These catalysts could drive continued interest in this token, with traders and investors eager to get in front of this trade.
Let’s see what to make of LEO’s price action and whether this run can continue.
What’s driving LEO higher this week?
Source: Getty Images.
Scarcity is a big deal for digital asset investors, as the supply and-demand debate within certain communities can often drive token demand in the near term. Thus, news this past week that consolidated iFinex revenues surged 27% and that the corresponding increase was earmarked for more LEO token burns led to anticipation of a lower outstanding supply, which appeared to bring more investors to the table.
As in the stock market with stock buybacks, token burns reduce the number of outstanding tokens, giving investors a larger stake in the future value of the underlying network they’re investing in. A higher burn rate and greater revenue generation from decentralized exchanges and other applications running on a given network mean that investors putting capital to work in a project today could see greater upside over the long term. That’s what investing is all about.
This announcement builds on earlier milestones, including a dual-chain deployment (between Ethereum and EOS), cross-chain communication work, and other interoperability efforts that should improve end-user utility.
I’m of the view that LEO is one project to keep an eye on. I intend to do a deep dive into this token to provide greater color on this network’s operations and what’s driving the fundamental improvement we’re seeing in LEO’s price action. But suffice it to say, LEO is one of the unique crypto projects out there in terms of sheer performance, still trading near all-time highs. Few competing tokens can say the same right now.