Perhaps no one would have imagined that DEX can be so popular now. It is eagerly sought after by major blockchain projects. No one can imagine that funds in the capital market will enter in large quantities, pushing DEX to new high again and again. At present, although Uniswap is still the leader in the DEX field, the emerging DEX platform represented by NGKEX is catching up.
Currently, although NGKEX has been launched for only one week, the daily trading volume has increased sharply. It is expected to surpass the current mainstream DEX platform.
So, what forces are driving the growth of NGKEX? Does it have any hope of entering the center of the DEX market? Based on the market environment and trend evolution, we will take you to re-understand NGKEX.
1. NGKEX leverages its own blockchain to gain momentum
Supporters who have been following the NGK blockchain should know that NGKEX has gained popularity before it goes online. This mainly triggered by its own blockchain — NGK blockchain. The NGKEX has the advantages of the bottom technology of the NGK blockchain and thus, it has been recognized by the public before it goes online.
In addition, the NGKEX has gone through several rounds of publicity and promotion before it went online. The NGK blockchain global communities have actively participated in its promotion, which has set off a boom for NGKEX.
Therefore, we can see from the above that NGKEX’s first wave of craze was built with the enthusiasm of the NGK blockchain. In other words, the NGKEX took advantage of its own blockchain.
2. From DEX to token value discovery platform
Everyone knows that the popularity of DeFi last summer was driven by Uniswap’s liquidity mining boom. The Uniswap successfully tested the AMM model, and many DeFi projects issued tokens by deploying smart contracts to create a pool of funds. Therefore, Uniswap played an enlightenment role in the early development of DeFi.
This does not mean that there are no drawbacks to the ICO at Uniswap. As we all know, Uniswap is built based on Ethereum, so users are required to pay gas fees when making transactions. However, under the increasing network congestion, gas fees have also risen, and retail investors obviously do not have any advantages compared with large-scale institutions, because the latter can use higher-end algorithms to preemptive transactions, and they can also use a large amount of funds to perform transaction with high gas fees.
When large institutions with large amounts of funds enter the market, the price of tokens in the capital pool will be greatly increased, which is unfair to retail investors and is not conducive to the discovery of token prices.
The NGK project team discovered this drawback when building the NGKEX, and resolutely adopted the DPOSS consensus mechanism to solve this problem. The DPOSS consensus mechanism has the characteristics of low fuel consumption, which can greatly reduce the gas fees, thereby saving users’ transaction costs. In addition, the NGKEX effectively controls the proportion of large-scale accounts held to ensure the fairness of transactions, and it also stipulates large-scale accounts and retail accounts enter the market at the same time. With that, it avoids the trading pressure caused by large investors to hold excessive positions on retail investors, and also avoids the unfavorable situation of large investors entering the market to increase the price of tokens for retail investors.
The design model such as NGKEX is no longer limited to the DEX level but has evolved into a token value discovery platform.
At present, NGKEX is still in the early stage of development, but it occupies a favorable position in the DEX field due to its unique advantages. The NGKEX may not compete with mainstream DEX platforms such as Uniswap, Sushiswap and Curve in short term, but in the long term, it will surely succeed in the DEX field with its strong advantages.