Bitget’s BGB Was The Best Performing CEX Token In 2022
Although the last year has undoubtedly been a bear market, some cryptocurrency trading platforms made a great job of proving that the success of exchange tokens is closely tied to the success of the platforms they represent. While the year was not entirely successful for the majority of them, Bitget still managed to successfully manoeuvre its way through the wreckage of both the Terra and FTX collapses. BGB token demonstrated positive yearly dynamics, raising the all-time high (ATH) price bar several times last year.
Bitget Token (BGB) — Biggest Winner From FTX Collapse
Source: CoinMarketCap
The BGB token turned out to be the only exchange token that stayed green all year round. The asset posted an unprecedented 136% year-over-year gain, with prices lifted in March and October and reaching its ATH of $0.4 on February 15, 2023.
Bitget massively benefited from the FTX collapse, increasing its share of the crypto derivatives trading market from 3% to 11%, according to the Token Insight report. A Boston Consulting Group report shows that in 2022, Bitget ranked among the top three crypto exchanges in terms of cryptocurrency derivatives trading volume, with a total trading volume growth of more than 300%. As the Bitcoin options market sees whales opting for bullish strategies and amidst the market volatility in general, the demand for crypto derivatives as an instrument for hedging risks and earning stable profits is higher than ever. Since the second half of 2022, crypto derivatives volume has been growing faster than the spot market. According to data from CryptoCompare, in January 2023, derivatives trading volume showed a monthly gain of 76% reaching $2.04 trillion, the largest percentage increase since 2021, and currently representing 70% of the entire crypto market.
The exchange’s foray into the spot market has been another contributing factor to the growth in the price of BGB. Bitget added AI (Artificial Intelligence), Arbitrum, and NFT zone listings to its Innovation Zone for early-stage exposure to related tokens. Within a week, 21 assets were listed in the Innovation Zone, while Future (AI) witnessed the biggest gain of 1263%.
Not only that. BGB token has reached its ATH several times over the past year driven by major partnerships, market expansion and the launch of pioneering products such as copy trading. It is noteworthy that in 2022 the token never dipped below the price of 2021, unlike other cryptocurrency exchange coins. In addition, BGB rallied impressively in October, breaking its price record after Bitget announced its partnership with prominent football player Lionel Messi.
The financial and technical stability of the exchange also played a big role in maintaining a stable price of its token throughout the year. Bitget is the only exchange among today’s top five that has never faced hacking attacks. The platform management did not reduce its staff, but indeed increased the number of employees by five times to 1,100 people in January 2023. This allowed the company to minimize the consequences of the market fall and show record financial and quantitative indicators in the new year.