Arkham (ARKM) token formed a God candle on Friday, soaring to a high of $1.60, its highest level since September 30. This rebound pushed its market cap to over $344 million, and its intraday volume to $92 million.
Arkham to launch an exchange
The main reason why the Arkham token surged was a report that the developers were working on a new crypto derivatives exchange.
According to Bloomberg, this exchange will be launched as soon as in November, and will be targeted towards retail investors.
The new exchange will enter an already crowded industry, where hundreds of centralized and decentralized exchanges are working to gain market share.
It will compete with popular centralized exchanges like Binance, Bybit, OKX, Bitget, Deribit, and Kraken. Binance handled derivatives trades worth over $47 billion in the last 24 hours followed by Bitoy, which processed $46 billion.
The biggest decentralized derivative exchanges are platforms like dYdX, Perpetual Protocol, Helix, and Kine Protocol.
Arkham, therefore, hopes that its popular appeal in the crypto industry will help it to gain market share.
The new launch is likely aimaed at providing the company with additional revenues since its main platform does not charge a fee.
Arkham, which is backed by Sam Altman, the head of OpenAI, Draper Associates, and Binance Labs, provides intelligence on thousands of cryptocurrencies. For example, users can do research on well-known names like Donald Trump and Justin Sun.
A quick search on Trump shows that his crypto portfolio has $6.9 million in assets, mostly Ethereum. Justin Sun holds cryptocurrencies worth over $1.3 billion.
Arkham is also useful when looking at token flows across thousands of tokens. Unlike platforms like Etherscan, it makes it easy to track inflows and outflows. It has over 800 million users each month.
The new exchange, if it is successful, can help to create more utility for the ARKM token. For example, it may be used to provide incentives to traders and loyalty programs.
Arkham price analysis
The daily chart shows that the ARKM token price formed a God candle, or a sudden bullish candlestick on Friday. It crossed the important resistance point at $1.39, its highest swing on August 24.
It has also moved above the 50-day and 25-day Exponential Moving Averages (EMA), and the key point at $1.17, its lowest point on April 13.
Historically, God candles are usually brief, unless there is a major follow-up event. Therefore, the token will likely remain in this range for a while. A break above the key resistance at $1.701, its highest point on Sep. 29 will point to more gains.
