It has been a really long time since the cryptocurrency industry was first introduced and honestly, the industry has had a wonderful journey so far by being able to lure in potential investors from all across the globe and managing to make a name for itself in the global marketplace. Not just that, as mentioned, the industry has had a surge in its overall growth and popularity recently, thus helping it to reach greater heights!
Having said that, I believe a majority of you are already familiar with the basics of the industry and I am sure that you are eagerly waiting for us to start with what we have with us today but, for some of you who are new to this whole thing, it’s best if we have a brief look at the industry first.
To begin with, cryptocurrencies as the name suggest is nothing but a form of online or virtual currencies that can easily be made use of for a variety of purposes including the purchase and sale of goods and services as well as for the purpose of trade and exchange over cryptocurrency exchanges available online.
In other words, crypto is a blockchain-based platform that is known to be decentralized to its very core. Being decentralized, the crypto world becomes more than capable of stepping outside the overall control and jurisdiction of central authorities and can work freely without any unnecessary government interferences as well.
Also, when the industry was first introduced there were not many currencies to choose from and honestly, not many people were looking to be a part of it either as people back then were very skeptical with respect to the return on investments they could expect as well as the safety of their money too.
That is surely not the case anymore as today, we have pools of currencies available for investors to choose from, with newer ones coming in with each passing day and tons of new investors joining in every hour.
Speaking of a lot of currencies available today in the marketplace, some of the most popular ones worth investing in includes Bitcoin, Cardano, Baby Doge, Ethereum, Dogecoin, Polkadot, Binance Coin, PancakeSwap as well as EverGrow Coin to name just a few of course.
In addition to this, it feels rather interesting seeing such a rapid growth of the industry over the past couple of years and so, let’s look at some of the major contributing factors responsible for this huge success including portability, high-profit margins, volatility, negligible response time, convince it offers, intuitive nature as well as ease of use of course.
Being volatile, it is important for you to be aware of the fact that, it is not always possible to predict the price changes and act accordingly as the price fluctuations in the crypto marketplace are almost immediate, thus leaving no time to plan. Therefore, whenever dealing in online currencies, keep in mind that, if the industry is providing you with an opportunity to earn huge profits and make quick money, if not done right, you could also end up having significantly huge losses as well.
Not just that, as per the chatter amongst some of the leading experts on the field, it has come to our notice that, crypto is rapidly progressing towards completely revolutionizing the global payment system and from where I stand, it looks like it has already started to do so as many merchants and businesses have started accepting crypto as an official mode of payment from their customers.
Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, Frax Share. To know more, I suggest you read further!
Everything to know about Frax Share (FXS)
The Frax Protocol is nothing but simply the very first fractional algorithmic stablecoin system. Not just that, the said platform is known to be permissionless, open-source as well as completely on-chain, which is currently implemented on the popular Ethereum network.
On the other hand, the FXS coin is said to be a cryptocurrency that has been created by the Frax Protocol in order to provide a highly decentralized, scalable, and algorithmic coin as and when compared to other fixed-source coins like Bitcoin.
In addition to this, the FXS coin, created on the Ethereum infrastructure is said to have introduced the world to the first-ever fractional algorithmic fixed price virtual currency as discussed earlier, which is partially backed by collateral and is partially algorithmically stabilized.
On a similar note, you should know that, there are two currencies in the Frax Protocol, FRAX which is a stablecoin known to target a tight band around 1 dollar and there is FXS (Frax Share), which is simply a governance token.
Before moving any further, it is probably worth noting that, the Frax Protocol was founded by an American software developer, Sam Kazemian back in 2019. Also, FXS is said to be the native utility token of the Frax Protocol, which as a matter of cat can easily be used for a variety of purposes on the platform itself like to accrue fees, and excess collateral value as well as seigniorage income.
Coming back to the topic, for some of you wondering as to what is meant by Fractional Algorithmic? Allow me a chance to explain. Basically, Frax is a unique stablecoin of sorts with parts of its supply backed by collateral and some others of the supply algorithmic as talked about earlier. However, the overall ratio of collateralized as well as algorithmic is said to depend on the market’s pricing of the FRAX stablecoin.
As a result, if FRAX is trading at above 1 dollar, the protocol decreases the collateral ratio but on the other hand, if FRAX is trading under 1 dollar, the protocol increases the collateral ratio. Furthermore, speaking of the total circulation of the same, the supply of the FRAX stablecoin is known to be dynamic and is therefore always changing in order to keep the price at 1 dollar due to its fractional algorithmic monetary policy.
On the other hand, the supply of the Frax Share (FXS) tokens is hard-capped at around 100 million tokens at genesis with absolutely no inflation schedule in the protocol. Basically, FXS is nothing but an investment as well as a governance asset, while FRAX is the currency token.
Lastly, as mentioned, the Frax protocol is a unique design stablecoin that is known to be community-driven with over 60 percent of the supply of FXS being issued over a number of years to liquidity providers and yield farmers.
Now that we have talked much about Frax Share, some of you must be wondering, whether or not it is a good idea to invest in the platform? If that’s the case, then let’s find out, shall we?
Investing in Frax Share (FXS)
As of today, the price of Frax Share is about 38.77 US dollars with a twenty-four-hour trading volume of 547,261,367 dollars. Not just that, in just the past twenty-four hours, the value of Frax Share has gone up by 31.93 percent, and with the current market cap of 628,380,695 US dollars, FXS is currently placed at #122 position as per the CoinMarketCap rankings.
Also, it is worth mentioning that, the current circulating supply of Frax Share is16,209,405 FXS coins, but unfortunately the maximum lifetime supply of the token is not yet available. In just the past week alone, the price of the platform has risen by 87.86 percent.
Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in Frax Share is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that Frax Share can prove to be a profitable investment in the near future, which is likely to provide you with higher returns and it is a possibility that your current investment may increase in value. But again, nothing can be said for sure!
If still not convinced, see it this way that, if say you buy Frax Share worth a hundred dollars today, you will receive nearly 2.507 FXS. According to the analysis done by experts on the field, after five years of your investment, the return is expected to be about +169.6 percent and thus, your current hundred-dollar investment will be nearly 269.6US dollars in 2027.
As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that just like any other currency in the crypto marketplace, Frax Share does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.
If you are wondering, where can you buy Frax Share? Let me help you with that. Currently, Frax Share is available on all major crypto exchanges but, some of the popular exchanges that have FXS listed on them include kuCoin, Binance, Phemex, DigiFinex as well as BingX to name a few.
In conclusion, what are your thoughts on Frax Share? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!
Also read: Stargate Finance: Everything you need to know