Investors observed the cryptocurrency market integrating geopolitical tensions between Ukraine and Russia into its total capitalisation. 

Bitcoin's price has recovered after plummeting close to $34,000 following Russia's invasion announcement on February 24. However, it is still less than the critical amount of $40,000. Interestingly, Bloomberg research indicates that investors are now moving towards exchanging native tokens in the face of market decline. Furthermore, do not rely on the king coin or other famous cryptocurrencies. As a result, Bitcoin has effectively become a defensive asset or an asset that may produce a consistent income stream. 

According to Jeff Dorman, chief investment officer at digital asset manager Arca, 

"For some reason, people still believe Bitcoin is a protective asset, despite the fact that it possesses none of the qualities of a defensive asset." Exchange tokens should be defensive because there are genuine revenues, cash flows, and amortisations." 

Gold and bonds are frequently classified as protective assets. Dorman is describing the risk-return profile of exchange native tokens. Notably, Arca then sold Bitfinex's $1 utility token Leo for $5.50, according to the media site. Another such example is FTX's FTT token, where Arca emphasises the significance of fundamental analysis. According to Clara Medalie, research director at cryptocurrency trading data firm Kaiko, 

"The FTX token is highly connected with any positive news coverage." FTT is positive since FTX has had a better year than most other exchanges that have their own exchange tokens." 

Binance Coin BNB has seen a 118.3 percent increase in active addresses. As a result, a robust recovery image is painted. Meanwhile, Nansen observes an increase in the number of unique addresses with LEO and FTT. Dorman further on this point, saying, 

"Who, fundamentally, gains from volatility?" The conversations. Because the volume and revenue of exchange tokens are increasing, they should outperform." 

Using Bitfinex as an example, the controversy centres around the 2016 hack. Recently, an American couple was detained for allegedly attempting to launder Bitcoin worth billions stolen in the Bitfinex breach. Back in the day, the value of the exchange token rose in anticipation of the amount retrieved. Dorman continued, 

"You have this kicker that's essentially a call option on whether or not Bitfinex ever gets the money back." 

The move of crypto exchanges FTX US and Bitstamp USA to enter the traditional finance arena in order to compete with competitors such as Robinhood made news some time ago. What's also worth noting is data indicating that, in the aftermath of the epidemic, the stock market and crypto space have become more correlated than ever. As a result, the emphasis is now on native tokens and the growing number of unique users. Dorman went on to say, 

"Affluent investors are putting money into exchange tokens." Certainly anyone who conducts serious basic analysis and is concerned with the growth of actual company."

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