Bitget, a prominent cryptocurrency exchange and Web3 company, has increased its involvement in decentralized finance (DeFi) by establishing a liquidity pool for its native Bitget Token (BGB) on the platform Uniswap. As of now, BGB is trading at approximately $7.01, with a 24-hour volatility rate of 4.7%. The market capitalization stands at around $8.41 billion, and over the last 24 hours, the volume traded has been roughly $145.31 million.
As stated in a public announcement, this action enables users to conduct BGB trades directly on the Ethereum blockchain, thereby expanding accessibility for BGB trading beyond Bitget’s centralized platform.
BGB Token Evolution: From Merger to Expansion
The move to integrate BGB on Uniswap marks a major event in the token’s timeline. On December 27, 2024, the merger between Bitget Wallet Token (BWB) and Bitget Token (BGB) was finalized by Bitget. This merger created a unified utility token, BGB, which now serves both the Bitget exchange and Bitget Wallet.
The consolidation simplified Bitget’s system, positioning BGB as the primary asset for transactions, trades, and incentives on all connected platforms.
By integrating BGB into Uniswap, the company has significantly boosted the token’s usefulness and ease of use, particularly within the Decentralized Finance (DeFi) sector. Notably, Uniswap is a prominent decentralized trading platform that functions based on an Automated Market Maker (AMM) system, thereby eliminating the conventional requirement for order books.
As a researcher in this field, I’m part of a system where I contribute sets of tokens to communal pools, known as liquidity pools. These pools serve as platforms for traders to exchange tokens according to the ratio of the assets available at any given moment, thereby maintaining a consistent flow of liquidity. The Automated Market Maker (AMM) mechanism intelligently regulates prices based on market forces like supply and demand, resulting in effective price determination without the need for intermediaries. This approach streamlines the process of price discovery, making transactions more efficient.
For those with BGB certificates, this integration offers enhanced trading freedom. Rather than being confined to Bitget’s centralized marketplace, users now have the opportunity to trade BGB through a decentralized system, thereby maintaining complete ownership and control over their assets.
This action follows the growing preference for Decentralized Finance (DeFi), as people tend to opt for financially secure options that are decentralized, do not require permission, and cannot be censored.
Bitget Conducts Its First Token Burn
Beyond connecting with Uniswap, Bitget has also introduced a significant deflationary approach aimed at increasing the rarity and lasting worth of BGB tokens.
On December 30, 2024, for the very first time, the exchange carried out a token destruction, taking out of circulation 800 million units of BGB – a significant decrease of 40% from the total amount in existence.
Burning such a substantial amount of tokens was a strategic move by Bitget, aimed at enhancing the rarity of BGB. This potential increase in scarcity might have a long-term positive effect on the token’s value.
Beginning in 2025, Bitget introduced a regular token burn strategy every quarter. According to this scheme, 20% of the company’s earnings from its exchange and digital wallet services during each quarter will be utilized for buying back and destroying BGB tokens.
This approach sets up a token economy that can run independently, with regular burns serving to decrease the available tokens while boosting their desirability. By persistently reducing the amount in circulation, Bitget strives to elevate the lasting worth and attractiveness of BGB in the market.
Thursdays saw Bitget Wallet revealing its latest addition – the BGB Center. This innovative feature is tailored specifically for BGB token owners, promising exclusive perks. As stated in the announcement, this center simplifies and enhances user experience by making it easy to handle assets and collect rewards.
Users have the ability to monitor their BGB VIP status, deposit BGB tokens for consistent returns, receive free tokens from prominent initiatives, and enjoy early access to cryptocurrency debit cards via the BGB Center.
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2025-01-17 17:11