Bitget exchange’s token, BGB, rose 11% in the last 24 hours to reach a record high of $4.6 today on Dec. 19. This rise followed the news that Bitget had received approval for a Bitcoin Service Provider (BSP) license in El Salvador.
Bitget’s BSP License To Boost BGB Demand?
The price increase of BGB followed the announcement of Bitget’s BSP license in El Salvador. This license lets Bitget legally operate in the Latin American market, where Bitcoin is becoming increasingly popular. El Salvador was the first country to adopt Bitcoin as a legal tender, and this approval allows Bitget to offer Bitcoin-related services in the market.
Following this announcement, market sentiment towards BGB improved. According to data from Santiment, BGB’s weighted sentiment rose to 0.33, crossing into positive territory on Dec.16.
BGB Weighted Sentiment. Source: SantimentThis indicates that more people online were discussing BGB positively than negatively, probably because of El Salvador’s potential to boost BGB’s demand, with the latter being the native token within the Bitget exchange.
Key Factors Behind BGB’s Surge
Apart from the approval in El Salvador, several other factors contributed to BGB’s growth:
Growth in European Markets: Bitget has also expanded in Europe. It has obtained licenses in Poland and Lithuania, allowing it to operate in these markets legally. The exchange has also re-entered the UK, seeking additional regulatory approvals in over 15 jurisdictions worldwide. New Payment Options: Bitget recently became the first exchange to support Vietnamese Dong (VND) payments through VietQR. This payment method makes it easier for users in Vietnam to deposit and withdraw funds. Telegram Game Partnership: Bitget’s partnership with the Telegram game Major has also boosted the popularity of BGB. The partnership includes airdrops and a $195,000 prize pool, which has attracted more users to Bitget and increased the demand for BGB.Apart from all these and market metrics, BGB’s open interest in futures contracts rose by 18.21% to $71.07 million.
BGB’s open interest in futures contracts reached $58M. source: coinglassOpen interest refers to the total value of outstanding futures contracts that have not yet been settled. In simple terms, it measures how many traders are actively betting on the future price of BGB. An increase in open interest indicates that more traders are participating in the market, which can signify growing confidence in the token’s price movement.
Additionally, BGB’s trading volume has reached a new all-time high of $207.34 million with an increase of 72.84%.
Bitget reached a new all-time high of $207.34 million in volume. source: CoinGlassThis is a sign that more people are trading BGB, which is driving the price higher.
