Wondering if you should invest in RabbitX in 2024? To answer that question, we need to delve into the project itself and the current market situation to determine if the project can provide returns in the upcoming year. So, without further ado, let’s get started.
RabbitX — Discounted Perp DEX
RabbitX is a decentralized exchange (DEX) known as a “Perp DEX.” This term refers to an exchange that offers perpetual contracts, also known as “perpetual swaps.” These are derivative contracts in the cryptocurrency market. Unlike regular futures contracts, perpetual contracts do not have an expiration date.
This means that traders can hold their positions for as long as they want. Perpetual contracts closely mimic the spot market based on margin trading and trade near the underlying reference Index Price. The main purpose of perpetual contracts is to allow traders to speculate on the future price of a cryptocurrency without actually owning it.
According to a K33 Research report, “Perp” platforms, or perpetual swap platforms, have gained popularity among traders.
What about the RBX token? Let’s see how it compares to other DEX tokens.
RBX Price Stabilizes
As of December 15, the RabbitX perp DEX token was trading at $0.18 during the European session after four days of sideways movement.
RabbitX RBX token price. Source:
TradingView
In general, decentralized exchange (DEX) tokens have seen a rally in the current quarter due to a lack of investor trust in centralized platforms like Binance. Additionally, they have benefited from the overall bullish trend in the crypto market, as investors have become more willing to invest in digital assets.
Mikkel Morch, Chairman of crypto investment fund ARK36, told CoinChapter that the declining dominance of Binance could indicate a shift towards decentralized exchange tokens.
So, let’s take a closer look at RabbitX and Perp DEXs to determine if they are worth considering.
Bullish On-chain Metrics for RBX
According to the K33 report, RabbitX could be the “rising star” among perp DEXs as it does not offer any incentives to buy RBX. This means it does not provide airdrops, staking rewards, liquidity mining, or trading competitions. In contrast, RabbitX’s direct competitor, Vortex, offers VRTX airdrops and Arbitrum (ARB) incentives. The chart below compares their 24-hour volume and open interest.
Open Interest vs Trading Volume. Source: K33 Research
The chart shows that RabbitX has a $404 million difference between the two, while Vertex’s difference is $1.46 billion. K33 researchers concluded that a smaller difference indicates that RabbitX perp DEX has more genuine traders on the platform, which translates to a higher level of trust.
Furthermore, while the RBX price did not show significant returns this week, the platform’s total value locked (TVL) reached its all-time high of $4.69 million on December 11, before correcting to $4.45 million on December 15.
RabbitX TVL and Trading Volume. Source: DeFillama
A strong TVL confirms a high level of user trust, while high trading volumes suggest that the RBX price could surge in the near future.
If the derivatives market continues to grow, RabbitX perp DEX appears to be a promising contender for user interest in the coming year. Additionally, there are several bullish macro-factors that could drive the crypto market in the upcoming year, including the potential approval of a Bitcoin ETF, the Federal Reserve’s dovish policies, and the upcoming BTC halving.