- IDEX has been one of the best-performing tokens recently.
- It surged to its highest point since August last year, meaning it has risen by 216% from YTD low.
- The developers unveiled their plans for layer 3 last week.
IDEX price has done well in the past few days even as other big-cap cryptocurrencies like Bitcoin and Ethereum recoiled. The token soared to a high of $0.1220 on Monday, the highest point since August 8 of last year. It has jumped by more than 216% from the lowest point this year, making it one of the best-performing cryptocurrencies in the world.
What is IDEX and why is it rising?
IDEX is a small but fast-growing blockchain project that makes it possible for people to trade crypto derivatives in an easy and cost-efficient manner. It is a decentralized exchange that competes with the like of dYdX and GMX, which provide a platform to trade crypto derivatives.
The main reason why the IDEX price is rising is that the developers launched a major upgrade last week. The new version introduced advanced features like better performance and more security, which comes from Ethereum’s layer.
IDEX’s new version, which will be launched in Q2, makes it a layer-3 platform that has quality on-chain and off-chain features. The off-chain features include the ability to keep your keys, gas-free settlement, and more transparency. IDEX described layer 3 as:
“The basic premise behind Layer3 is simple; push even more of the activity off-chain to reduce the cost of transacting, but without significantly affecting the security of transactions.”
It also has a good self-custody feature and ultra-low fees. $IDEX holders can save more money by being rewarded with 50% of the gas fees made in the platform. These funds are paid out using USDC. Therefore, IDEX price has jumped as investors wait for the launch of the new version of the platform.
The biggest concern for IDEX is that competition in the industry is tight. For example, dYdX and GMX already offers these derivatives with minimal fees. There are also other centralized exchanges like Binance and OKX that provides these services.
IDEX price prediction
On the daily chart, we see that the IDEX crypto price made a bullish breakout after the developers unveiled their Layer 3 plans last week. As it rose, the token jumped above the important resistance level at $0.0835, the highest point on February 21st. It has also jumped above the 25-day and 50-day exponential moving averages and is approaching the key resistance point at $0.1423 (8th August high).
Therefore, there is a likelihood that the token will pull back in the coming days as investors start taking profits. If this happens, the token will likely retest the support at $0.0834. Such a move will then result in a continuation of the bullish trend as buyers target $0.1423.
