Crixfeed is the focused digital media, crypto information Services Company for the decentralize crypto asset (DAX) and blockchain technology community.
Binance Coin (BNB) Rallies 118 Percent In 2 Months And Breaks Into Top 10 On CoinMarketCap As Binance DEX Launch Approaches
Binance Coin (BNB) has become the first crypto exchange utility token to break into the top 10 on CoinMarketCap, following a 118 percent rally in 2 months. Binance Coin (BNB) now has a market cap of $1.31 billion, surpassing Bitcoin SV’s (BSV) market cap of $1.16 billion and Cardano’s (ADA) market cap of $1.07 billion. If this rally continues it is possible that Binance Coin (BNB) could surpass the Stellar (XLM) and Tron (TRX) market caps.
This rally is also likely being fueled by anticipation for the launch of the Binance decentralized exchange (DEX). Binance CEO Changpeng Zhao says the testnet of the DEX will go live on Feb. 20. Presumably, the mainnet will go live soon after that.
The Binance DEX is entirely run on a blockchain called Binance Chain. Binance Coin (BNB) will transition from being an Ethereum (ETH) ERC-20 token to a native Binance Chain asset. Traders, speculators, and investors are perhaps buying up Binance Coin (BNB) ahead of the DEX launch since Binance Coin (BNB) will be needed for all DEX transaction fees.
The Binance DEX will be used to trade cryptocurrencies, issue new tokens, and propose new trading pairs that are voted on by the community. All Binance DEX actions and transactions will be recorded on the Binance Chain. Since Binance is the biggest crypto exchange in the world, the Binance DEX has the potential to be the biggest DEX in the world. A key point is that all users of Binance DEX will hold their private keys instead of the exchange holding the keys.
Ethereum’s (ETH) price may be negatively impacted by Binance Coin (BNB) leaving the Ethereum network since Binance Coin (BNB) is the top ERC-20 token. Further, Binance Chain will compete with Ethereum (ETH) since it will be an easier way to create a token and get it listed on a major exchange.
Another factor that may have accelerated the Binance Coin (BNB) rally is the quarterly burn, which removed 1.62 million Binance Coins (BNB) from circulation. Binance uses 20 percent of its quarterly profits to buy back and burn Binance Coin (BNB) and plans on ultimately removing 100 million of the total 200 million Binance Coins (BNB) in circulation. Longterm, this should help increase the price of Binance Coin (BNB).
Further, Binance Coin (BNB) has numerous uses beyond the DEX, which is why it has gained so much value even before the DEX has launched. Binance traders who use Binance Coin (BNB) receive a 25 percent trading discount, which when aggregated amounts to tremendous savings since Binance is the top cryptocurrency exchange in the world with $500 million to $1 billion of volume per day.
Also, Binance Coin (BNB) is accepted by numerous blockchain and cryptocurrency platforms including Crypto.com, Monetha, ETHLend, LNDR, Coinpayments, CoinGate, Nexo, Adamant Messenger, BytePay, TravelbyBit, Mithril, Propy, Tripio, CenterServ, InvestFeed, Kyber Network, NAGA, Pundi X, Gifto, Decentraland, VIBE, MoreCoin, Eidoo, AERON, DENT, Moeda, Storm, and CanYa. This makes Binance Coin (BNB) the equivalent of a utility token on steroids.
Binance Coin (BNB) is currently trading at $9.17, well less than the all-time high of $24.91 during the major crypto rally that peaked in January 2018. However, Binance Coin (BNB) has been having success even in the worst of the bear market and is in a good position to gain value when the next big crypto rally comes.
The post Binance Coin (BNB) Rallies 118 Percent In 2 Months And Breaks Into Top 10 On CoinMarketCap As Binance DEX Launch Approaches appeared first on Crypto.IQ | Bitcoin and Investment News from Inside Experts You Can Trust.