Cryptocurrency exchanges all over are earning huge profits. Many market analysts have reported that some of the big cryptocurrency exchanges are pulling in trade volumes worth of billion dollars on a daily basis. This is easily seen by the figures shown on CoinMartketCap.
The market capitalisation together with traders and investors interest in cryptocurrency has exploded over the past few years. As a result, the market has seen an increased daily trading volume in tens of billions of dollars. However, despite the large sum involved in the crypto market, the means to transact the assets and move them around through exchanges are largely dissatisfying to traders since most exchanges offer services below the current trends and demands of the market.
Moreover, the current market trend of decentralised finance (DeFi) is positive since despite the increased competition for the market, coin trade volume on exchanges has significantly grown. Increased trade volume only means that exchanges offering DeFi options and features are making more money. Whether the market surges or slumps, crypto exchanges will earn profit.
The major point is that a crypto exchange is simply a medium of exchange, with tools that complement the rise of blockchain technology. Exchanges does not necessarily leverage the technology itself, and they also do not not place bets on which segment of the market is ripe for the best earning. Instead, exchange allow others develop the products and let traders and investor to speculate, and then offers a means for the two. Hence, crypto exchanges take no risks of a speculative nature.
Trading as a public utility
Despite the increased number of newly created exchanges, the market segment still has room for new teams who have genuine things to offer. Any new exchange with a focus on security, liquidity, scalability and tailored tools for decentralised finance can penetrate the market. However, most exchanges only compete on trading fees and token menu. Injective Protocol derivative exchange is a market entrant with genuine product differentiation. Injective Protocol is going to fulfill user demands of a large crypto menu, high liquidity, convenience and security. But most importantly, it is going to top-up its offering with added derivative market that provide users with DeFi solutions.
To ensure that there is sufficient amount of volume to ensure the liquidity needed to process transactions and trades at any point, Injective protocol will partner up with other exchanges. Injective protocol guarantee an all-time liquidity to ensure the transactions can always be processed for traders and at the same time its partners get access to new volume for their market pairs. In addition, transactional volume coupled with standard exchange processes can be demanding on the underlying technological systems. Hence, Injective protocol exchange is developing a system based on cosmos zone that will be able to support an incredible through-put as well as provide an Ethereum decentralised trading experience to users
Fundraising — Seed funds lead by Pantera Capital
Capital raising is a very important aspect of project development, and the crypto space has demonstrated this. All blockchain projects have undergone different kinds of fundraising. Crypto funding include seed investments, private sales, crowdsale (IEO, IPO ICO etc).
In the case of Injective Protocol, the project has attracted many top crypto seed investors — Pantera Capital has lead the investment and has invested $2.6 million into the project. This is a clear proof of the potentials of Injective protocol and the kind of prospect the project has in becoming the market leader.
Value additives Injective Protocol is offering
A major portion of the existing exchanges have held their valuations by merely competing on price of their native tokens. However, prices of exchange tokens are not a real competitive edge as it isn't the factor that attract traders. Injective protocol decentralised derivative exchange is entering the market with genuine competitive edges with major focus on the factors that traders really care about most; convenience, security and liquidity
- Convenience
In this modern era of Grub Hub and Amazon, users generally have become used to getting services at their convenience. And given the difficulty in trading cryptocurrency assets, it is not surprising that blockchain technology have only been adopted by few people. Now, Injective Protocol is building a new generation layer-2 decentralized derivative exchange that will offer users the opportunity to trade cryptocurrencies and enjoy DeFi solutions at their convenience. This factor will not only allow Injective protocol to have share in the market segment, it would can propel it to be a market leader
Entry barrier is synonymous with ease of trade. Often times users always had to convert their fiat to crypto on separate exchanges that offer fiat gateways, making the process of onboarding difficult. Injective protocol is going to provide an easy point of entry — a gateway, by allowing a direct crypto-fiat trading pairs for huge menu of assets.
- Security
People are generally adjusted to the security offered in the traditional financial systems. In the crypto space, there has been a recurring cases of security breeches — many exchanges have been hacked with multiple millions worth of USD stolen. Security problems have also been highlighted as a major barrier for mass crypto adoption. Similarly to traditional financial market, traders and investors demand a bank-grade security for their crypto assets. Injective protocol is building a treading platform that offer this kind of security
Beside general volatility of the crypto market, liquidity is there major problem that digital assets on exchanges suffer. Major DEXs like Binance DEX, Bancor and IDEX suffers liquidity problems. However, by providing deep liquidity for assets, the problem can easily be solved. Injective protocol is built to provide high liquidity for the users to enjoy trading.
Rarity — What makes Injective Protocol Unique
There are several numbers of cryptocurrency exchanges out there, however most of them lack differentiated competitive edges.
Currently, vast portion of crypto traders select exchange merely on the basis of whether their target coin or token is available on it. Injective Protocol is about to introduce a concept of brand development to cryptocurrency markets — it will provide traders with features that they can enjoy and become attached to. By aiming to add the highest levels of customer support to their crypto exchange, Injective protocol is bringing the necessary human touch to calm an aggrieved trader when they needs help most.
Customer support is not only instrumental in general trading, it is also a competitive edge that is going to allow Injective Protocol to build customer loyalty. On top of that, focus on providing DeFi tools like derivatives position position Injective Protocol as a DeFi market pioneer among decentralised exchanges
Importance of product strategy
Far too many teams have launched projects on the blockchain with a focus on the financial services market. Understandably, financial services are currently the most organic utility of blockchain technology, especially with the popularity of decentralised finance. However, vast portion of these projects only utilise the raw aspect of blockchain technology while forgetting the the raw aspects of this technology and forgetting that a consumer-oriented product needs to focus on user experience. What is obtainable is that most exchanges only focus on design leaving user experience to suffer.
This is what sets Injective protocol apart from other exchanges — the exchanges alignment with design and user experience are imperative in decentralised finance. Deviating from the norm of convenience is an unwise move, and that’s why Injective protocol, which abides by the norm of providing convenience and ease of trade with its technology, is easily differentiated from the competition.
Wrap Up
From an investment point, it is important to deeply evaluate the market and the potential worth and capitalisation of a product. Injective protocol decentralised derivative exchange is targeting the DeFi market segment which has daily volume in the tens of billions of dollars. This guarantees that Injective protocol is aiming to disrupt a lucrative market with massive revenue stream. Big exchanges have established huge market valuations, and their platform tokens have increased exponentially. The tokens provide an idea of the underlying valuation of the exchange itself. BNB and KCS are valued at approximately $1 billion and $200 million, respectively. Given the market valuations that can be held in a derivative market segment where DeFi assets are traded, Injective protocol is a project that has the potential to soon establish a large market cap.