• Frax Finance, a stablecoin issuer, has seen a massive surge in growth due to its lending and liquid staking business.
• The coin’s governance token, FXS, has risen 55% over the past week and is currently trading at $10.14.
• Frax is better advantaged over other LSD platforms due to their outsized CRV/CVX treasury holdings and increased utility stemming from the newly minted Frax stablecoins and fees from Frax Finance.
The past week has seen a massive surge in growth for Frax Finance, a stablecoin issuer, due to its lending and liquid staking business. This has caused the coin’s governance token, FXS, to rise 55%, an impressive feat that has the token currently trading at $10.14.
This growth is a result of the wave of activity among liquid staking protocols, with Frax launching their protocol, frxETH, in October of last year. The protocol has already received over $100M in investment according to Defi Llama data, with Fraxlend, the lending protocol, experiencing a more than 36% rise in activity as well.
The surge in activity and growth has been attributed to Frax’s outsized CRV/CVX treasury holdings, which allow them to stimulate higher ETH staking yield on their staked ETH derivative product than the rest of the market, as well as the increasing utility stemming from the newly minted Frax stablecoins and fees from Frax Finance.
The Frax Finance team is hopeful that the coin’s growth will continue, with the company expecting to be a central player in the DeFi sphere. Thor Hartvigsen, for example, believes that Frax Finance will be a hot commodity in DeFi due to the range of features and services it offers.
Overall, Frax Finance has experienced a meteoric rise that has seen its FXS token more than double in value, and the company is confident that this growth will continue as they become a more prominent figure in the DeFi space.