Frax Price

Frax is a decentralized stablecoin cryptocurrency designed to maintain a value of $1 USD. It uses a fractional-algorithmic mechanism to maintain its peg, with part of its supply backed by collateral and part algorithmically stabilized. Frax is the native gas token of the Fraxtal network, a modular Layer 2 rollup blockchain built on Ethereum. Key features of Frax include: - Aims for price stability at $1 through a hybrid collateralized/algorithmic approach - Used as gas token on Fraxtal network, incentivizing usage through rewards - Current price: $3.77 - 24h trading volume: $100.48K - Market cap: $343.2M - Circulating supply: 90.89M FRAX - Total supply: 141.9M FRAX - All-time high: $1.14 (February 7, 2021) - All-time low: $0.8745 (March 11, 2023) Frax plays a key role in the Frax ecosystem, which aims to provide scalable, low-cost blockchain infrastructure. As of 2025-07-19, Frax ranks #219 by market cap among all cryptocurrencies.

Frax was created on December 20, 2020. It was launched as a stablecoin project aiming to provide a partially collateralized stable cryptocurrency. The FRAX token serves as the governance and utility token for the Frax protocol, which introduced the concept of fractional-algorithmic stablecoins. Since its creation, Frax has become an important player in the decentralized finance (DeFi) ecosystem, offering innovative solutions for stablecoin design and implementation.

The founders of Frax are Sam Kazemian and Travis Moore. They launched FRAX in December 2020 as part of the Frax Finance ecosystem. Sam Kazemian serves as the President of Frax Finance, while Travis Moore is the CTO. Both have extensive experience in the cryptocurrency and blockchain space, having worked on various projects before founding Frax. Their goal with Frax was to create a fractional-algorithmic stablecoin system that combines the benefits of collateralized and algorithmic stablecoins. Since its launch, Frax has become one of the leading stablecoins in the decentralized finance (DeFi) ecosystem, currently ranked 219 by market capitalization at $343.2M.

Frax works as a fractional-algorithmic stablecoin system. It maintains its peg to the US dollar through a dual-token model: 1. FRAX - The stablecoin pegged to $1 2. Frax Shares (FXS) - The governance token that absorbs price volatility FRAX is partially collateralized by crypto assets and partially algorithmic. The collateral ratio adjusts dynamically based on market demand. When demand for FRAX is high, the collateral ratio decreases. When demand is low, it increases to maintain the peg. Users can mint new FRAX by depositing collateral assets and FXS tokens. They can also redeem FRAX for the underlying collateral and FXS. This mechanism, along with arbitrage opportunities, helps maintain the $1 peg. The FRAX protocol also includes features like AMM pools, lending markets, and yield farming to enhance liquidity and utility. As of 2025-07-19, FRAX has a market cap of $343.2M and is ranked #219 among cryptocurrencies.

Frax utilizes a modular rollup architecture built on the OP Stack. Key components include: 1. EVM-equivalent execution layer for smart contracts and transactions 2. Independent data availability layer developed by the Frax core team 3. Blockspace incentive mechanism called Flox that rewards users and developers for network activity 4. FRAX as the native gas token for transaction fees 5. Fractal scaling roadmap to enable L3 networks and further scalability This modular design allows Frax to achieve high throughput and low costs while maintaining security through Ethereum settlement. The architecture also provides flexibility for future upgrades and optimizations as the network grows.

Frax has an ambitious roadmap focused on expanding its ecosystem and enhancing its position as a leading stablecoin and DeFi platform. Key future developments include: 1. Launching Fraxtal, a modular L2 rollup with innovative features like blockspace incentives (Flox) to reward users and developers. 2. Expanding cross-chain integrations to increase Frax's accessibility and use cases across multiple blockchains. 3. Introducing new DeFi products and services built on the Frax protocol to drive adoption and utility. 4. Continuing to optimize the algorithmic-AMO stabilization mechanism to maintain Frax's peg. 5. Exploring partnerships with major institutions and fintechs to bridge TradFi and DeFi. 6. Enhancing governance mechanisms to further decentralize control of the protocol. 7. Investing in security audits and upgrades to ensure robustness as the ecosystem grows. With its strong foundation and forward-looking roadmap, Frax aims to become an increasingly important part of the DeFi landscape by 2030. The team is committed to innovation while maintaining stability and security.