A Solana-based decentralized exchange (DEX) altcoin just skyrocketed over 400% on Friday. This surge happened after South Korea’s largest crypto exchange decided to support trading for the asset.
Now, traders on Upbit can easily buy and sell DRIFT, which is the native token for the Drift Protocol. This open-source DEX allows for transparent and non-custodial trading.
The project’s whitepaper explains it well. It states, “Drift was designed to be capital-efficient while also protecting your assets.” They achieved this by creating a sophisticated system known as a cross-margined risk engine. This tool helps prevent users from taking on too much risk.
For example, in the lend/borrow markets, you can use collateral for perpetual futures, which helps you trade more effectively with spot assets. Every token you deposit can earn you more through borrowing and can also serve as collateral for perpetual swaps. Borrowers can only take out loans if they have more collateral than needed, ensuring multiple safety measures are in place for added protection.
On Friday, DRIFT hit a new all-time high of $2.60. That’s a whopping 400% increase from its price of $0.51 just a day earlier on November 8th. However, it has since pulled back and is now trading at $1.98.
Since its launch in May, DRIFT has seen several positive developments. For instance, Coinbase started supporting DRIFT just days after it launched. Plus, in September, the crypto investment firm Multicoin Capital revealed it had taken a significant position in the asset.