Frax Finance’s FXS token experienced a notable surge in price, reaching $9.64 and potentially aiming for $10 amidst a proposal mirroring Uniswap’s initiative to allocate protocol fees to stakers. The initiative was detailed by Frax Finance founder, Sam Kazemian, in an interview with CoinDesk. This move by Frax Finance follows in the footsteps of Uniswap’s recent proposal to distribute network fees to UNI stakers.

The proposal, which seeks to distribute Frax Protocol revenue back to veFXS stakers, has gained traction within the community. This evolution could allow FXS holders to stake their tokens for veFXS, positioning them to receive a portion of the protocol revenue. Staking options include Ethereum mainnet and Fraxtal, the layer-2 protocol of Frax Finance.

FXS token had previously reached highs near $11 on February 5. The current 8% surge has propelled it to $9.64, levels last seen on February 20. The recent momentum within the DeFi sector, fueled by Uniswap’s surge, could potentially push FXS back above $10. If this upward trajectory continues, FXS might target $12, potentially surpassing the resistance level from March 2023 and aiming for the all-time high of $42.80 achieved in January 2022. Conversely, key support levels for Frax Finance price are identified at $8 and potentially $7.

FAQs

What is the reason behind the surge in Frax Finance’s FXS token?

The surge in FXS token price is primarily attributed to a proposal by Frax Finance to distribute Frax Protocol revenue back to veFXS stakers, mirroring a similar initiative by Uniswap to allocate protocol fees to stakers.

How can FXS holders benefit from the proposal?

FXS holders can benefit from the proposal by staking their tokens for veFXS, enabling them to receive a share of the protocol revenue. Staking options are available on Ethereum mainnet and Fraxtal, the layer-2 protocol of Frax Finance.

What are the potential price targets for FXS token?

With the recent surge in FXS token price, the next potential price targets are $10, $12, and ultimately the previous all-time high of $42.80 reached in January 2022.