Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject
Binance Coin (BNB) has gained more than 13% over the past week. The token’s daily trading volume shot up a whopping 80% over the same period. The appreciation in BNB’s price has led to a 12% increase in its market capitalization as well.
BNB was created by the largest crypto exchange in the world, Binance. The token was launched back in 2017, and was initially, an ERC-20 token on the Ethereum blockchain, but has since been migrated to its own mainnet.
BNB has seen significant growth in value since its launch. In the first year, the value of BNB increased by over 100 times, and it has continued to increase in value over time. This has made BNB a popular investment option for many investors. The token saw its all-time high in May 2021 when it reached $676.3.
BNB’s primary utility comes into play on the Binance exchange, where traders use it to pay for trading fees, staking, participation in IEOs, etc. The wide utility helps maintain the token’s demand. While the association with the Binance exchange has proven useful for BNB, it comes with its own disadvantages. Any controversy surrounding the exchange, or its founder Changpeng Zhao, has a direct impact on the token’s price.
One reason for BNB’s relatively strong performance may be its strong fundamentals. Binance is a well-established and respected exchange, and BNB is a key component of its ecosystem. BNB is also backed by a number of high-profile partnerships and collaborations, which adds to its credibility and appeal.
Well, the exploit on BNB chain-based Ankr protocol on 1 December sent BNB’s price down by almost 5% within a matter of hours. As far as price action is concerned, the bulls attempted to break the key resistance zone at $300 back on 5 December. However, the bulls held their ground. $281 has emerged as a short-term support zone.
BNB has been in the news recently due to its involvement in the hack that was carried out on the bankrupt crypto exchange FTX. The perpetrator has swapped thousands of BNB tokens for other cryptos but still holds an estimated $41 million worth of BNB.
The immense volatility in BNB prompted some strategic decisions from Binance CEO Changpeng Zhao, one of them being the top-up of the exchange’s Safe Asset Funds for Users or SAFU. The exchange announced that it will be replenishing this insurance fund, bringing its holdings up to $1 billion
June 2022 had a yearly low of $183 as a result of this decline. However, it is important to note that on the daily chart, the RSI indicator has not yet risen beyond 50.
The nearest long-term resistance level, at $427, would be reached if the current trend continues.
Late in January 2021, Binance Coin joined the upswing in the cryptocurrency market, rising from $40 to $330 in a single month. BNB’s price dropped in March, trading for a while in the $250 to $300 region, but in April it started to rise again quickly, reaching an all-time high of $690.93 on May 10.
Consider this – In January 2021, the price of Binance Coin (BNB) was $40. However, 2021 also saw a significant incline in BNB’s price, one that allowed it to hit $690 on the price charts. In fact, this was its highest price level in 2021.
Worth noting, however, that soon after, the latter few months of 2021 saw the wider market fall across the board. Needless to say, the same had a ripple effect on BNB’s price charts as well, with the exchange token hitting new lows.
In the past, Binance Coin (BNB) rose subtly and gradually to rank among the most valuable cryptocurrencies by market cap. Above all, the growth of Binance, the biggest cryptocurrency trading platform, has caused the value of the BNB to rise significantly in recent years.
In recent months, the bear market has caused Binance Coin (BNB) to experience more severe losses. BNB surpassed its all-time high of $690 during the May 2021 bull market. However, the bear market soon began in November and the price plummeted.
When consumers use the BNB on the platform, Binance reimburses them for a large portion of the transaction expenses. BNB has grown in significance as a component of the platform over the past few years. The demand for Binance Coin rises as Binance expands and gains more users, which boosts the coin’s price and forecast.
Binance makes sure that the supply of BNB is routinely lowered as demand rises. Every three months, a specific portion of BNB is destroyed, making Binance Coin deflationary and improving the outlook for BNB going forward.
BNB also functions as a payment method and opens up more opportunities on the Binance platform, including savings, DeFi staking, and liquidity mining via the BNB vault.
It was initially used as an ERC-20 token on the Ethereum (ETH) network before being moved to the Binance network and changing its name to BEP-20.
As the Ethereum Merge has taken place, Binance has been able to manage the transition for its users in an efficient manner.
Binance Coin was initially created in 2017 as a utility token for discounted trading fees. Today, however, its use cases have grown on several cryptocurrency exchanges. BNB can be used to pay transaction fees on many Binance platforms such as Binance.com, Binance DEX, and Binance Chain, besides crypto.com and HTC. Hotel booking sites (e.g. TravelbyBit), SAAS platforms (e.g. Canva), DeFi apps (Moeda) and a large number of platforms accept BNB as a mode of payment.
BNB’s price has fallen as a result of the cryptocurrency market’s sharp bearish shift. One can also argue that the SEC’s issues with Binance took a heavy toll on the price of the altcoin. Even so, expectations remain high.
Finder.com surveyed 54 people recently, with the panel believing that the coin has promising long-term potential. The crypto’s price is expected to hit $781 in 2023. And, although BNB may not be receiving as much attention right now, it routinely ranks among the best-performing currencies in terms of ROI. It is also the fifth-largest crypto in the world.
Late in January 2021, Binance Coin joined the upswing in the cryptocurrency market, rising from $40 to $330 in a single month. BNB’s price dropped in March, trading for a while in the $250 to $300 region, but in April it started to rise again quickly, reaching an all-time high of $690.93 on May 10.
Binance Coin’s price fell as the entire cryptocurrency market collapsed in late May 2021. At about $200, it recovered and rose to about $430, but this upturn was fleeting. BNB fell to about $250 in late June and then fell once more in the middle of July. However, the market began to show signs of recovery later that month, and Binance Coin wasn’t an exception. BNB’s price increased dramatically once more, surpassing $350 in the first half of August.
However, like most cryptos in the market, 2022 wasn’t a good year for the exchange token, with BNB falling on the charts.
Given everything, buying BNB must be a wise decision in the long run, right? Most analysts have positive predictions for BNB. Additionally, the bulk of long-term BNB price projections are upbeat.
Why do these projections matter?
BNB is a cryptocurrency that is native to the world’s biggest cryptocurrency exchange. It is also crucial to the Binance Smart Chain ecosystem. The latter, in fact, is one of Ethereum’s competitors, and it offers substantially higher scalability and lower transaction costs.
The steady increase in the number of traders on Binance also has a positive impact on the price of BNB. The cost of this altcoin had increased, rising from $526.94 in October 2021 to $555.34 at the start of January 2022. It is anticipated to keep expanding as trade activity on the exchange rises as Binance establishes itself as a market leader in the cryptocurrency trading industry.
Its value reached a high point, in part due to the volume of BNB used for decentralized applications (DApps), DeFi, and smart contracts after the launch of Binance Smart Chain. With 44 exciting projects, BSC is the second-largest DeFi platform at the moment. Over 620,000% have been added to the value of Binance Coin between its 2017 introduction and its 2021 peak.
The fact that the exchange has maintained a burning program since the coin’s introduction is just another reason to trust BNB. On April 15, 2021, Binance burned more than 1,099,888 BNB, equal to $595,314,380 worth of tokens. This is Binance’s 15th quarterly BNB burn, and in terms of cash, it was the biggest one yet.
In this article, we’ll quickly review the current activity of the cryptocurrency with a focus on market cap and volume. In conclusion, predictions from the most well-known analysts and platforms will be summarized together with an analysis of the Fear & Greed Index to determine market mood.
Source : ambcrypto
AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers. We have quickly grown into the digital news source for an emerging generation of cryptocurrency enthusiasts, reaching more than a million readers on a monthly basis, across the globe.
