Binance Coin worth investing
BNB Bucking the Bearish Trend
The cryptocurrency market is continuing its downward trend with almost all coins in the top 40 positions, now in the red. However, one coin stands out despite this market condition, making significant gains over the past week. This brings us to Binance Coin (BNB). Much of this success can be attributed to the exchange behind the coin, notably Binance.
Binance has become one of the top exchanges in the world in respect of trading volume, recording a staggering $800 Million trading volume in the last 24 hours. Out of this, Binance Coin accounts for over 10 % of the trading volume.
Binance Coin is Going Against the Wave
There are many factors which contribute to Binance Coin’s stability and success. As of 18/06, BNB coins were trading at $16.97, a 3% increase. Some such factors responsible for this are listed below:
• BNB discounts: As stated in its whitepaper, Binance Coin holders are granted a discount when it comes to trading fees. The discount structure is set to decrease over time, with 50% for the first year and 25% for the next year. The interest in Binance Coin spiked up when Binance announced a double referral program for holders who hold 500 or more BNB tokens. This resulted in an increased demand for the coin.
• Coin scarcity: Binance conducts quarterly token burn events, where the exchange uses 20% of its profits to buy back tokens and destroy them. This is slated to take place till half of its 200 million token supplies have been purchased back. Another factor affecting the supply of coins is the aforementioned referral program. Traders with less than 500 BNB tokens have not sold so that they can avail the current 40% commission on referral.
BNB Price analysis
Despite the bearish nature of the cryptomarket at the time of writing, Binance Coin has soared even when Bitcoin, Ethereum and Ripple have been dragged down. The effects of this were felt on June 18th when Binance crossed NEM to claim the 15th rank. As of June 18th, NEM has decreased by 2.18% while BNB is in the green by 2.31%.
Another important development occurred on June 14th, when it was revealed that Nexo and Binance coin had formed a partnership to deliver a crypto-loan service. Indeed market sentiments towards the coin were high, as the fruition of the NEXO-Binance partnership further substantiates Binance Coin’s position as safe and stable collateral.
Other positive events include the introduction of new trading pair BNB/ETC. This immediately impacted the daily trading volume of both the coins in a positive way.
BNB is an investment with high potential
The world of cryptocurrencies can be very unpredictable due to its volatile nature, making it very difficult to predict future events with assurance. That being said, the very nature of Binance Coin makes it stand out from the rest of the crowd. Thus, many traders in the community see it as a profitable investment, backed by one of the biggest Cryptocurrency exchanges in the world