Why is BGB (Bitget's token) soaring today?

BGB, the token of the CEX Bitget exchange, was one of the few tokens that recorded a price increase on December 27, despite the sharp decline of BTC and altcoins over the past 24 hours.

On the morning of December 27, the BGB token of the CEX Bitget exchange recorded a 37% growth in 24 hours from $5.7 to $7.9 billion, and the trading volume also reached more than $1.9 billion, an increase of 30% from yesterday.

In 30 days, BGB tokens have risen 400% from $1.5 to $7.7 and more than 1,200% since the beginning of 2024.

BGB token on Bitget platform 4H. Source: Tradingview

The main reason for this hot growth comes from the fact that Bitget is in the process of merging Bitget Wallet Token (BWB) and Bitget Token (BGB) into one token, in order to build a unified ecosystem for both centralized exchange and decentralized wallet Bitget Wallet.

After the merger, BGB will be integrated into Bitget Wallet and support features such as Fair Launchpool and multi-chain gas fee payments in most on-chain transactions. In addition, the token will also be deployed on public blockchains and large DeFi ecosystems, becoming the core staking asset for lending and staking protocols.

According to Bitget, the combined user base of the exchange and wallet has surpassed the 100 million mark. The company also aims to expand BGB's application to the offline PayFi sector, allowing payments in activities such as dining, travel and shopping.

BGB and BWB will be merged into one main token with constant supply of BGB

The merger will not affect the total supply of BGB, with a conversion rate of 11.68 BWB in exchange for 1 BGB. BWB-related services will cease to operate on the Bitget platform at 17:00 on December 27.

With a capitalization of $10.5 billion, BGB is ranked 23rd by market capitalization. Against the backdrop of the current bearish crypto market BGB is one of the rare major capitalization tokens to record strong growth.

Bitget is a crypto exchange and web3 company founded in 2018. The exchange offers crypto trading services across the globe, with prominent features such as copy trading and other trading aids.

Currently, Bitget reports more than 45 million users, with an estimated daily trading volume of around $10 billion. The trading volume of USDT futures pairs reached $16 billion, while daily spot trading reached $400 million, more than twice as much as before. The platform's protection fund has grown from more than $400 million to over $600 million, designed to enhance security and strengthen user trust.

CEX Exchange Trading Volumes. Source: Coinmarketcap

In Vietnam, Bitget introduced the VND bank transfer feature, which allows users to deposit VND through VietQR and withdraw funds via bank transfer to buy popular cryptocurrencies such as BTC, ETH, USDT, SOL and BGB through Bitget's cash conversion feature.

In addition to the exchange, Bitget developed Bitget Wallet (formerly BitKeep), a multi-chain crypto wallet that supports many features such as token swaps, NFT trading, DApp access, and other Web3 solutions. Bitget currently has the 6th largest spot trading volume on the market.