To begin with, we’ll start with a brief introduction to the Frax Share crypto asset. From there, we’ll explore the connection between the FXS crypto coin and the Frax Finance ecosystem. Next, we’re going to cover the coin’s most prominent use cases along with its tokenomics. We’ll then analyze the price of the FXS token and explore the coin’s on-chain metrics. And to top things off, we’ll show you how to find coins similar to FXS using Moralis Money so you won’t miss similar price rallies in the future!
What is the FXS Coin? Exploring the Frax Share Crypto
The Frax Share (FXS) crypto coin is an Ethereum-based ERC-20 token minted on December 16, 2020. The FXS crypto coin is the non-stable utility token of the Frax Finance ecosystem. Furthermore, it can be staked for veFXS (vote-escrowed FXS), which is used to govern the protocol and its stablecoins.
Moreover, besides being a fundamental part of the ecosystem’s governance mechanics, the FXS crypto also provides additional utility and features within the overall Frax Finance economy. For instance, FXS holders can partake in the protocol’s revenue-sharing system. However, we’ll further explore the use cases of the FXS crypto coin in another section.
The FXS coin is designed to be volatile, and according to the Frax Finance documentation, it’s important to note that the protocol takes a highly governance-minimized approach. This is a way to design trustless money, as fewer parameters for the community to manage, the less there’s to disagree upon.
Yet, there are multiple parameters FXS token holders can influence and govern. Some prominent examples include adding/adjusting collateral pools, refreshing the rate of the collateral ratio, and changing various fees.
However, to further understand the ins and outs of the FXS crypto coin, let’s briefly explore the connection between the token and the Frax Finance ecosystem!
The Connection Between the FXS Coin & Frax Finance
Frax Finance is an innovative stablecoin protocol currently featuring three various stablecoins: FRAX, FPI, and frxETH. Furthermore, along with these three coins, Frax Finance has three sub-protocols: Fraxlend, Fraxferry, and Fraxswap.
The FXS crypto is – as we previously mentioned – the utility token of the Frax Finance ecosystem. As such, it plays an integral role in the protocol’s governance and the entire system as a whole. To give you another example besides governance, the FXS token is additionally needed to mint FRAX – one of Frax Finance’s stablecoins.
The FXS token has an initial total supply of 100 million tokens, but the circulating amount is likely deflationary as it’s correlated to the frequency at which FRAX coins are minted. Consequently, the design of the Frax Finance protocol is so that the FXS coin will become more scarce and increase in value as long as the demand for FRAX grows.
Nevertheless, this is just one example of how the FXS coin ties back to Frax Finance. If you’d like to immerse yourself further into the ecosystem, check out one of our previous articles to learn more about Frax Finance!
Frax Share Crypto Use Cases
So far, we have already touched on some of the most prominent use cases of the Frax Share cryptocurrency. However, let’s dive a bit deeper into a few examples to highlight the value of the FXS coin further:
- Governance: First and foremost, one of the most essential functions of the FXS crypto is to provide holders with governance rights. The FXS coin can be staked as veFXS, giving holders the right to submit proposals and participate in governing the various stablecoins (FRAX, FPI, and frxETH) and other parts of the protocol’s infrastructure.
Each veFXS coin is worth a vote in all governance proposals. The longer a user decides to lock up their FXS coins, the more veFXS tokens they receive. Users can lock up their FXS tokens for up to four years. As an example, if they decide to lock up 100 FXS tokens for a maximum of four years, they’ll receive 400 veFXS tokens in return.
Moreover, the number of veFXS tokens decays over time, returning to the original value at the end of the lock-up period. At this point, users can redeem their veFXS tokens for the original FXS.
- Revenue Sharing: The protocol’s primary cash flow distribution mechanism is allocated to veFXS holders. The cash flow from AMOs, Fraxswap fees, and Fraxlend loans are used to buy back FXS from the market and are then distributed to veFXs stakers as yield. The emission rate varies depending on several factors, including sources of cash flow, the market price of FXS, governance actions, etc.
- Mint FRAX: The FXS crypto is also needed to mint new FRAX coins. Consequently, as the demand for FRAX increases, the value of FXS should theoretically go up as it becomes more scarce.
FXS Coin Tokenomics
The FXS coin has an initial total supply of 100 million tokens, and they are to be distributed as follows:
- 60% to the Community: 60% of all FXS tokens will be distributed through several yield framing, exclusive governance protocol, and liquidity initiatives over a number of years.
- 35% to the Team and Investors: 20% goes to the team, founders, and early project members. 3% goes to strategic advisors and early outside contributors. And the remaining 12% goes to private investors, where 2% is unlocked at launch, 5% vested over the first half a year, and 5% vested over the remaining year with a six-month cliff.
- 5% to Projects, Grants, and Partnerships: The remaining 5% is allocated to the protocol’s project treasury. This community-driven pool of FXS will be used for grants, future audits of smart contracts, bug bounties, cross-chain implementations, etc.
FXS Coin Price Analysis & Prediction
The FXS crypto launched in 2020, and back in 2021/2022, the token experienced an impressive 3,400% nine-month price rally when it broke out from its all-time low and peaked at about $42. However, since then, the token has lost almost 85% of its value, as it, at the time of writing, is trading for $6.77.
What’s more, at the beginning of 2023, the FXS crypto entered second gear, gaining momentum and experiencing a 250% price rally over about a month-long period. After this spike, the price fell again and has, from May to August 2023, been struggling to break the $6.77 threshold.
Based on a brief technical analysis (TA), it looks as though the FXS token has found its temporary resistance level at about $6.77 and a support level at about $5.46. As such, these are the levels to look a for potential breakouts. And as you can see in the image above, it’s trending toward a positive breakout. But it’s too early to say, and it might also be a fakeout.
That said, if it should break the $6.76-ish area, it might move toward $7.50, which is the next resistance level. So, that’s as far as we can go for our prediction. Remember, it also depends on what moves the entire market will make in the near future!
However, since these levels probably have shifted by the time you’re reading this, we urge you to do your own TA. If you need help with this and want to learn more about breakouts, check out our article on the #1 crypto breakout scanner!
So, is the FXS crypto a good investment? And will it see similar price rallies in the future? Let’s find out!
Is FXS a Good Investment?
We can’t tell you whether FXS is a good investment or not, and it has to do with several factors. First of all, we’re unaware of your altcoin trading strategy and risk tolerance, which are two deciding factors. And more importantly, we don’t know when you’re reading this. The FXS token might be a good investment at the time of writing, but not a so promising opportunity a few weeks later.
Instead, to help you determine if FXS is a good investment or not, we urge you to study the real-time, on-chain metrics of the tokens using a blockchain analytics tool like Moralis Money!
Moralis Money leverages blockchain data in real time, presenting it to you in an understandable and readable format. And if you didn’t know, on-chain activity and data always precede price action. Consequently, this is the best and quickest way to determine whether a token is a good investment.
To help you in your analysis, please check out the Moralis Money $FXS token page:
Each cryptocurrency has its own dedicated token page, where you’ll find a token’s current price, alpha metrics like changes in net experienced buyers, net volume, holders, and liquidity over a given period, trading charts, security information, etc.
Studying the $FXS token page gives you most of the information you need to make an informed investment decision. For instance, if the token gains experienced buyers, other investors are buying the token. And if the net volume rises, it can indicate that buy pressure is growing overall.
What’s more, the token page also features trading charts from TradingView. With these, you can easily apply any technical indicators and conduct your own TA in seconds!
Also, even though the token pages give you a lot of information, always remember to continue doing your own research!
Where to Buy the FXS Coin?
Once you complete your analysis, you might come to the conclusion that you want to buy the FXS crypto coin. If this is the case, then you should know that you can swap FXS using Moralis Money with ease. Simply go to the token’s token page, connect your wallet, and hit the ”Swap” button to the right:
Here’s a brief demo where we swap DUCKIES for wrapped BTC, illustrating how easy it is to acquire tokens:
Furthermore, Moralis Money leverages the 1inch DEX aggregator, providing you with the best possible prices. This makes Moralis Money one of the cheapest crypto swap platforms available!
Also, if you’re unsure about the differences between swapping and trading crypto, check out this guide: crypto swap vs. exchange.
Find Similar Tokens to the FXS Crypto Using Moralis Money
Not only does Moralis Money allow you to analyze and buy tokens, the platform additionally features an industry-leading Token Explorer!
With the Token Explorer feature, you can pick and choose between 20+ filters to create unique search strategies. In doing so, you can target precisely the coins you’re after based on irrefutable on-chain metrics and data. And with this feature, it’s possible to find similar tokens to FXS!
So, how does it work?
All we have to do is create a search query matching the on-chain metrics of the FXS crypto. As such, let’s take a closer look at this token’s alpha metrics over the past two weeks:
As you can see, it has increased in net experienced buyers, net volume, and holders. We also know that the token has a security score of 99. So, let’s create a strategy with these metrics in mind:
- Step 1: Apply the Security Score metric. With Security Score, we filter for coins with high DEXT scores:
- Step 2: Let’s narrow the search further by applying the Net Volume and Holders filters. In doing so, our results will only contain altcoins with growing buy pressure:
- Step 3: Add other filters to make your query even more unique.
That’s it! When working with Moralis Money, you can find potential altcoins at the click of a few buttons. From here, you can now visit each coin’s token page to continue your research to determine whether or not they present the right investment opportunities for you!
Summary: What is the FXS Coin? FXS Crypto Price Prediction
In today’s article, we dove into the FXS crypto coin, which is the utility token of the Frax Finance ecosystem. The FXS token was minted back in 2020, and it’s, at the time of writing, priced at about $6.77. What’s more, the FXS coin has several use cases, such as giving token holders governance rights and a share of the Frax Finance ecosystem’s profits.
In addition to exploring the FXS crypto, we also showed you how to find similar tokens using Moralis Money – the industry’s #1 crypto quick scanner!
Moralis Money leverages on-chain data in real time, giving your true market alpha. As such, with a tool like Moralis Money, you can dodge crypto FOMO and find up-and-coming crypto in a heartbeat.
Also, did you know that it’s possible to maximize the value of this tool by subscribing to the Moralis Money Pro plan?
In doing so, you can get narrower timeframes for all search parameters, access to a private Discord server, premium education, and much more:
If you found this article interesting, consider checking out some additional guides as well. For instance, explore the BOLT token or learn everything you need to know about crypto portfolio management!
