The cryptocurrency market experienced a remarkably "complete" rotation of gains within the first few dozen trading days of the year. After Bitcoin and other major cryptocurrencies surged early in January, assets like Bitcoin Cash, fueled by halving narratives, took the lead by mid-month. Towards late January, secondary tokens such as DASH, TRX, and BSV saw independent rallies due to specific news catalysts. Most recently, exchange platform tokens collectively took up the baton, marking another phase of this rapid upward trend.
Following the Lunar New Year, multiple exchanges announced new beneficial policies, effectively driving a sharp rise in platform tokens. Data indicates that the average gain for major exchange tokens over the past week reached 30%.
During this wave of growth, aside from progress in public chain developments, the primary catalysts for platform tokens have been the "burning of unsold tokens" and "policy upgrades."
For instance, OKEx’s announcement about a week ago to burn all unsold OKB triggered a wave of similar actions from other exchanges. While such aggressive deflationary measures can push token prices higher in the short term, once the market fully absorbs this information, gains are often followed by notable pullbacks or even reversals. Some exchanges even faced operational challenges due to hasty burn decisions, highlighting the need for careful evaluation of such "positive" news.
In contrast, policy upgrades tend to offer more sustainable momentum. Taking OKB as an example, its initial surge was indeed driven by the burn announcement. However, subsequent policy enhancements—such as the testnet launch of OKChain—helped OKB maintain its upward trajectory in recent sessions. Meanwhile, Huobi, which has rolled out a series of密集利好, positions HT as one of the standout platform tokens with strong further growth potential.
Although HT initially underperformed compared to OKB (which benefited from a large-scale token burn), it caught up significantly over the recent weekend. A closer look at Huobi’s recent activities suggests that HT’s ambitions extend far beyond short-term price action.
Recent Developments Around HT
- On February 7, Huobi Global announced that HT’s burn cycle would shift from quarterly to monthly. The first monthly burn occurred on February 15.
- On February 10, Huobi stated that HT serves as the core asset within its ecosystem. The upcoming testnet launch of Huobi’s public chain will introduce new strategic layouts and rules.
- On February 12, Huobi Global updated its user tier system, integrating HT into the VIP benefits framework. Holding HT now grants users double "Firepower" points.
- On February 15, Huobi completed its first monthly burn, destroying 4.0568 million HT (worth approximately $20.067 million). Notably, January’s trading volume already exceeded half of the entire fourth quarter of 2019.
- The same monthly report also revealed that HBDM perpetual contracts are in internal testing and will launch soon. Revenue from this product will contribute to future HT burns, with market analysts estimating a potential 20%+ increase in burn volume. Additionally, HBDM will soon support HT as margin collateral and offer HT staking for lower-risk users. By March, HT margin trading will go live, allowing users to borrow USDT to buy HT with 2x leverage initially.
As the cryptocurrency market matures, every token must find reliable buy-side support and identify growth opportunities—especially under Bitcoin’s dominant market influence. Huobi’s recent series of moves appear to provide a compelling answer to these challenges.
Deflationary Advantages of HT
While Huobi did not opt for an extreme one-time burn like some competitors, it significantly accelerated its burn rhythm. Monthly burns are now three times more frequent than the previous quarterly schedule. The January burn volume—already over half of Q4 2019’s total—not only underscores Huobi’s growing profitability but also confirms that the new policy will substantially speed up HT’s deflation.
Moreover, with HBDM perpetual contracts soon launching and contributing to the burn pool, HT’s deflationary pace is set to increase further, especially considering the strong performance of Huobi’s existing futures products.
Comparing the repurchase and burn efficiency of HT, BNB, and OKB under current policies—and assuming constant burn rates relative to market cap (i.e., steady exchange profitability)—HT is projected to be fully repurchased and burned much faster than its two major rivals.
This implies superior deflationary efficiency for HT, which in turn suggests stronger potential investment value.
Growing Utility and Demand
Beyond deflation, integrating HT into Huobi’s VIP system enhances its appeal to exchange users. Plans to support HT as contract collateral and allow staking for borrowing will further stimulate market demand. The upcoming margin trading feature for HT may attract derivative traders back to the platform, improving liquidity and market depth. Rough estimates indicate that these developments could bring over 500,000 HT in buy-side demand and double the number of holders in the coming months.
Ecological development around HT continues to strengthen its fundamental value. Since January, HT holders can use the token on Travala.com to book over 2 million hotels across 90,000 destinations with discounts up to 40%. Future partnerships are expected to expand into international credit cards, digital banking, and collaborations with major internet firms and innovation hubs. These expanding use cases will drive demand from yet another angle.
Technical Perspective
With the recent rally, HT has reclaimed all its losses from the second half of last year. From a medium- to long-term chart perspective, HT appears to be forming a large double-bottom pattern spanning about a year and a half. A decisive break above the neckline resistance, followed by a confirmation of stability, could signal that HT’s upward trend is only just beginning.
Frequently Asked Questions
What are platform tokens?
Platform tokens are native cryptocurrencies issued by crypto exchanges. They often provide holders with benefits such as reduced trading fees, participation in token sales, voting rights, and profit-sharing through buybacks or burns.
How does token burning affect the value of a platform token?
Token burning reduces the total supply of the token, creating deflationary pressure. If demand remains steady or increases, the reduced supply can lead to appreciation in value. It also signals the exchange’s commitment to long-term value creation.
Why is HT’s shift to monthly burns significant?
Monthly burns increase the frequency of supply reduction, accelerating deflation. The first monthly burn already demonstrated strong results, with January’s burn volume exceeding half of the previous quarter’s total, indicating healthy exchange earnings and faster token value appreciation.
What additional use cases does HT have?
Beyond exchange-based utilities, HT can be used for hotel bookings on Travala.com, with more travel, finance, and e-commerce integrations expected. It also functions as collateral, offers staking rewards, and enables margin trading on Huobi.
How does HT compare to other major platform tokens?
HT currently shows a faster deflation rate relative to market cap compared to tokens like BNB and OKB. Its integration into Huobi’s VIP system and growing ecosystem partnerships may further boost its utility and demand.
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