Decentralized Exchange Vela’s DXP Token Surges Ahead of Beta Release on Arbitrum

Arbitrum-based decentralized trading platform (DEX) Vela Exchange’s DXP utility token has mounted a powerful rally as the project prepares to release its much-anticipated beta version next week.

DXP’s price gained some 50% in the past 24 hours and its price more than doubled since trading below $1 on Wednesday morning, according to cryptocurrency price tracker CoinGecko.

Vela Exchange was originally known as Dexpools on Ethereum before moving development to Arbitrum, an Ethereum layer 2 blockchain. The platform allows for spot and perpetual futures trading, as well as peer-to-peer over-the-counter (OTC) trading where traders can avoid slippage and frontrunning.

The platform’s beta version opens for registered testers with early access on Jan. 31, and will be available for the broader public starting Feb. 7, according to the project’s website.

Vela’s token also garnered attention for listing the rebranded, identical utility token VELA on Camelot, another DEX on Arbitrum, on Thursday, potentially contributing to the rally. DXP holders on Ethereum and Metis can exchange their tokens one-to-one to VELA on Arbitrum without any fees using a bridge.

DXP or VELA investors can earn a share of the trading fees generated on the platform. At press time, DXP and VELA were both changing hands at $2.19.

Traders are betting on Vela taking a share of Arbitrum’s growing DEX activity and potentially mounting a challenge to the dominance of derivatives exchange GMX. Perpetual-focused GMX emerged as a leader in the sector last fall surpassing DEX giant UniSwap in daily trading fee earnings at one point. Gains Network, a DEX initially launched on Polygon and then expanded to Arbitrum, generated over $1.5 billion trading volume on Arbitrum after nearly a month of being deployed, CoinDesk reported. Trader Joe, the top DEX on the Avalanche blockchain, is also expanding to Arbitrum in early 2023.

Decentralized exchanges (DEXs) have become increasingly popular in the cryptocurrency space, as they offer a decentralized and trustless way to trade cryptocurrencies. One of the latest DEXs to make waves in the space is Vela, a decentralized exchange built on the Arbitrum layer-2 scaling solution. Recently, the price of Vela's native token, DXP, has seen a significant surge in value, as the platform gears up for its beta release on Arbitrum.

Arbitrum is a layer-2 scaling solution that is designed to improve the speed, scalability, and cost-efficiency of Ethereum-based decentralized applications. By moving transactions off of the Ethereum blockchain and onto a layer-2 solution, Arbitrum is able to significantly reduce transaction costs and increase the speed of transactions. This makes it an ideal platform for building decentralized exchanges, which are often bogged down by high gas fees and slow transaction times on the Ethereum blockchain.

Vela is one of the first DEXs to be built on the Arbitrum platform, and it has already attracted significant attention from the cryptocurrency community. The platform is designed to be a fast, secure, and decentralized exchange that supports a wide range of assets, including ERC-20 tokens, NFTs, and DeFi assets. One of the key features of Vela is its use of a unique liquidity-sharing mechanism, which allows users to share liquidity across different pools and earn rewards for providing liquidity.

As Vela approaches its beta release on Arbitrum, the price of its native token, DXP, has seen a significant surge in value. The token has seen a growth of over 200% in the last 30 days, making it one of the top-performing tokens in the cryptocurrency space. The surge in the value of DXP is likely due to the growing anticipation for the beta release of Vela on Arbitrum, as well as the increasing interest in decentralized exchanges and the layer-2 scaling solutions that they run on.

The beta release of Vela on Arbitrum will be a significant milestone for the platform, as it marks the first time that users will be able to test out the platform's features and trading experience. The beta release will also give the Vela team valuable feedback on how the platform is performing and what areas need improvement. The team will be able to use this feedback to make necessary changes to the platform and improve it before the mainnet launch.

In conclusion, Vela is an exciting new decentralized exchange that is built on the Arbitrum layer-2 scaling solution. As the platform approaches its beta release, the price of its native token, DXP, has seen a significant surge in value. The beta release of Vela on Arbitrum will be a significant milestone for the platform, as it marks the first time that users will be able to test out the platform's features and trading experience. With its unique liquidity-sharing mechanism and support for a wide range of assets, Vela has the potential to become one of the leading decentralized exchanges in the space.