Security tokens are going strong in the second half of 2020. A strong increase in performance has been recorded, yielding higher market caps and greater trading volume. Some of the STOs on the market also noted gains of over 190%.
Tracking More Security Tokens
About a year ago, it appeared as if security token offerings, or STOs, would achieve a popularity capable of rivaling that of ICOs. That outcome never came to pass, but it doesn’t mean that security tokens are not popular. In fact, this industry is known for quality over quantity, which gives birth to some interesting projects.
Speaking of quantity, two new projects have been added to STOMarket in July of 2020. Both Tokensoft and Arca introduced tokens. For Tokensoft, it represents their seed and Series A equity rounds, allowing them to issue tokens to investors directly. For Arca – which is a live client of Tokensoft – they decided to tokenize a fund of US Treasuries for public investment.
Due to these new STOs coming out, there are currently 20 tracked security tokens. It remains a relatively small industry, but the overall growth noted last month cannot be ignored.
STO Market Cap Explodes
In the report, it is mentioned how the STO market cap was en route to hit $400 million. This has already happened in recent days. Today, the total STO market cap sits at over $480 million. A clear validation of the industry and the tokens being provided. It is an industry that can sue some more competition moving forward. Ongoing growth in this industry is fueled by certain tokens noting significant demand.
First, tZERO has noted the biggest trading volume, and its tradeable tokens represent over 88% of the security token industry market cap.
Secondly, the tokens traded on this platform are major players. Both Overstock Digital Voting Series A-1 Preferred Stock (OSTKO) and tZERO Preferred Equity (TZROP) have noted strong growth in July 2020.
All in all, the security token trading volume increased by 179.8% between June and July 2020. That is a pretty significant increase. As such, one can say that overall interest in STOs is picking up as of late. A monthly trading volume of $8,081,207 may not seem like much, but it shouldn’t be dismissed either.
The Top Performing Tokens
Several security tokens note bullish growth during the month of July. A very interesting turn of events, and one that may hint at a much bigger trend waiting to materialize. Given how these tokens equal a long-term investment, their current price may be a reflection of investors’ expectations.
TZROP Is the biggest gainer of the month. Not only does it note an average daily volume of over $90,000, it has also gained 233.33% in value. Following this price increase, the token can still be bought for just $5, which makes it an affordable and approachable investment.
Overstock’s OSTKO token also notes solid growth. A daily trading volume of over $266 million further highlights the overall interest in this token. All of the bullish momentum has yielded a 193.57% token value increase. One OSTKO cost $57.5 in July. Today, that same token has a price tag of $73.
Last but not least, Blockchain Capital’s BCAP token also noted strong growth in July. First of all, it generated an average daily volume of over $3,036. Second, its price increased by 58.79% throughout July, resulting in a value of $2.89. It still has that value today, even though the token has attempted to move to higher levels in the past few days.