Deep Dive
1. Deflationary Tokenomics (Bullish Impact)
Overview:
MEXC implements quarterly MX burns funded by 40% of exchange profits. The Q2 2025 burn destroyed 2.4M MX (2.57% of supply), creating artificial scarcity. This mechanism targets a fixed 100M circulating supply long-term.
What this means:
Reduced supply could pressure prices upward if demand holds, especially during exchange profit surges. Historical burns (like July 2025) triggered short-term rallies, but sustainability depends on MEXC’s revenue growth.
2. Exchange Ecosystem Momentum (Mixed Impact)
Overview:
MX powers MEXC’s ecosystem – holding ≥500 MX gives 50% futures fee discounts and access to launchpad airdrops ($116M distributed in 2024). However, MEXC ranks 8th among CEX tokens by market cap, trailing Binance’s BNB and OKX’s OKB.
What this means:
New listings and user incentives could boost MX utility, but competition limits upside. Volume fell 36% YoY despite exchange growth, signaling adoption challenges.
3. Regulatory Overhang (Bearish Impact)
Overview:
The UK’s FCA is implementing strict crypto licensing by 2027, while global exchange crackdowns intensify. MEXC’s lack of clear jurisdiction disclosure compounds compliance risks.
What this means:
Regulatory uncertainty may suppress institutional interest in MX. Negative developments could trigger selloffs, as seen with similar tokens during policy shifts.
Conclusion
MX’s price hinges on MEXC’s ability to grow revenue (fueling burns) amid regulatory turbulence. Short-term technicals show oversold conditions (RSI-7 at 15), but macro risks dominate.
Will MEXC’s Q1 2026 burn exceed market expectations?