May was an incredibly difficult month for the cryptocurrency market, with most tokens posting heavy losses as a bear market was confirmed, but not all projects falling back to pre-bull market lows.
Chain (XCN), a protocol designed to help organizations launch their own blockchain network or connect with other more established networks, managed to upload more than 120% from May 19.
Data of Cointelegraph Markets Pro Y TradingView show that, Since hitting a low of $0.0712 on May 11, XCN reversed course to hit an all-time high of $0.176 on May 31.
Among the three reasons that explain the good performance of XCN are multiple exchange listings, launch on BNB Smart Chain (BSC), and several notable partnerships, including long-standing collaboration with the Stellar Foundation.
Inclusions add volume
In March 2022, Chain deployed a new smart contract for its token and changed its name from CHN to XCN. Following the makeover, XCN made its way to KuCoin and subsequent listings on Huobi, Gate, Bitrue and Hotbit were accompanied by strong increases in trading volume.
Several of the exchanges supporting the project have also launched perpetual contracts for the XCN token, such as Gate, Huobi, ByBit and Poloniex. which has contributed to generating greater awareness of the project and has initially caused an increase in the volume of trade.
XCN is also part of a cross-chain integration with BNB SmartChain, allowing low-cost token transfers and trading on PancakeSwap, where holders can earn returns for providing liquidity to the exchange.
Following the integration into BSC, the price of XCN went from $0.0712 on May 11 to $0.14 during the following week.
Notable associations
Since 2014, Chain has had several notable partnerships and funding rounds, including an initial raise of more than $40 million from Khosla Ventures, Pantera Capital, Capital One, Citigroup, Fiserv, Nasdaq, Orange and Visa.
In 2018, the project was acquired and became part of the commercial arm of the Stellar Foundation known as Interstellar. Chain was reacquired in 2020 as part of a ledger-as-a-service platform called Sequence.
Recent developments with the Stellar protocol, including its partnership with MoneyGram to create a stablecoin-based platform for money transfers, may have positive effects on the price of XCN due to their close ties.
In April 2022, Chain also announced a strategic partnership with Alameda Research, which established the private equity and quant cryptocurrency trading firm as Chain’s primary market maker. While none of these associations seem significant enough to explain XCN’s current gains, it is notable that the altcoin’s price action has diverged from the broader cryptocurrency market for nearly an entire month.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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