‘Carbon-free’ WAX (WAXP) crypto up 12% even as Bitcoin is losing value

Highlights

• A sharp dip in Bitcoin has followed the gains it registered on the first day of June
• Though the larger cryptoverse is in the red, the WAXP token has risen sharply during tough times
• The WAX blockchain focuses primarily on non-fungible tokens and gaming projects

Is Bitcoin the barometer of the cryptoverse? Though BTC has the biggest share in the aggregate market cap, altcoins seem to be charting their own path.

Bitcoin has pared gains it accumulated recently. After having risen to nearly US$32,000, BTC is again under US$30,000, with almost a 6% fall over the past one day. An altcoin, the WAXP token, however, seems to be defying odds. It has risen sharply at a time when major assets, including ETH, are down.

Let’s explore the WAX ecosystem.

WAX NFT services

WAX provides blockchain services, but with non-fungible tokens in focus. It calls itself a network for digital collectibles and video games.

The network enables developers to launch new fungible digital assets through the minting process. It also provides a gaming platform for decentralised projects. What WAX highlights is its “carbon-free” nature, with NFTs that plant trees to offset carbon. The official website of WAX claims it has 12 million users for collectibles.

It also boasts tens of millions of transactions on its network on a daily basis. Besides, WAX is used by tens of thousands of decentralised apps (DApps), it is claimed.

Also read: Decoding Mina crypto: What makes it ‘world’s lightest blockchain’?

WAXP token

The native token of the WAX network, WAXP, is used in staking, voting and as a medium of exchange within its ecosystem. The users can stake their tokens to vote on governance proposals. NFTs available on WAX can be bought using WAXP, it is stated.

WAXP token price

WAXP is listed on exchanges like KuCoin and Binance. As of writing, it is trading at nearly US$0.14. The price and trading volume have surged almost 12% and 600%, respectively, in the past 24 hours.

The WAXP market cap is over US$285 million. It features in the top 150 cryptoassets. Over 2 billion WAXP tokens are in supply, according to CoinMarketCap.

That said, WAXP traded at nearly US$0.45 on January 1 this year. By this measure, it has shed enough value. The price trajectory has largely remained in the red over the first five months of 2022.

Data provided by CoinMarketCap.com

Bottom line

The WAX blockchain can be used to mint NFTs and other digital assets. It is specifically targeting the NFT space, which might be one reason behind the recent surge in value. CryptoPunk and BAYC are two of the most popular NFT projects. A few digital assets rolled out by these have sold for millions of dollars each. Only time will tell if this sizeable rise in the price of the WAXP token can sustain for long. But rising when Bitcoin and Ether are falling sharply is arguably no mean feat.

Also read: Why has Threshold (T) crypto trading volume shot up by 1,000%?

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