The decentralized trading platform (DEX) token, Vela Exchange, which is based on Arbitrum’s blockchain, named VELA, is making an impressive rally in its price in anticipation of the release of the Beta version of the exchange next week.
The price of VELA, since its launch on January 26, has seen a 138% rise, according to cryptocurrency price tracking service CoinMarketCap.
Moved and renamed
The Vela Exchange was originally known as Dexpools and was located on Ethereum, however it was moved to Arbitrum, a layer-2 blockchain on top of Ethereum. The platform allows for direct trading and lifetime futures trading, as well as peer-to-peer over-the-counter (OTC) trading.
First opens for testing and then to the public
The beta version of the platform opens for people registered to test it, with early access on 31 January. The version will be available to the general public from 7 February, according to the project website.
Vela’s token also attracted attention from the registration it submitted for a redesign along the lines of the VELA token at Camelot, another DEX at Arbitrum. It is possible that this redesign played a role in the price rally.
However, according to a Vela Exchange announcement, DXP holders on Ethereum and Metis can exchange their tokens – one-for-one – for VELA on Arbitrum, at no charge.
It’s worth noting that DXP or VELA investors can earn a share of the trading commissions generated on the platform.
Gets market share
Investors and traders alike believe that Vela Exchange can gain share from the growing activity of DEXs on Arbitrum and potentially create competition for GMX and challenge its dominance. GMX, which focuses on duration trading, gained the reins in its industry and overtook DEX “behemoth” UniSwap (UNI) in daily trading commission profits at one point.
Gains Network, a DEX that was originally launched on Polygon and then expanded to Arbitrum, generated over $1.5 billion in trading volume on Arbitrum after nearly a month of growth. Trader, Joe, the leading DEX on Avalanche’s blockchain, is also set to expand to Arbitrum in early 2023.