Binance Coin (BNB) Exceeds Its 2018 All-Time High After Year-Long Bear Market, First Coin To Do So
Binance Coin (BNB) has surpassed its all-time high in USD terms after a bear market that affected the whole space in 2018. The digital currency used by the Binance exchange has surpassed $25 in the last 24 hours after registering a price increase of 16%. Binance is the second best performing digital currency among the top 100.
Binance Coin Leads The Market
Binance Coin became the first large-cap virtual currency to reach a new all-time high on Friday. The digital currency surpassed the levels seen back in 2018 when it grew up to $24.46 according to CoinMarketCap. The closest two digital currencies to reach their all-time high are Maker (MKR) and Bitcoin (BTC), each of them 64% and 74% down from their previous price records.
Binance Coin has registered a price increase of over 300% just this year and more than 400% since it bottomed at around $4.5 in December 2018. There are many reasons why Binance Coin has performed in such a positive way.
The first thing is related to the fact that Binance is being used as a platform to launch digital currencies to the market. Projects are conducting Initial Exchange Offerings (IEOs) in which an exchange provides a dedicated platform for investors to purchase the tokens. This is similar to Initial Coin Offerings (ICOs) but exchanges conduct the necessary due diligence to be sure about the quality of these projects.
Because of this reason, users were purchasing BNB coins to participate in the IEOs in the Binance platform. This allowed the buying pressure for BNB to increase before the launching of IEOs. Due to the fact that users were also dumping the coins after the IEO, the platform decided to create a lottery system to reduce volatility in BNB price.
However, this is also going to affect BNB because users would have to hold their coins for 20 days in order to participate in an IEO and receive lottery tickets.
— CZ Binance (@cz_binance) April 19, 2019
Furthermore, Binance has also announced that it has already launched its own blockchain network in which BNB will be the native currency. With this launching and a decentralized exchange platform that is expected to be rolled out soon, the demand for BNB is also expected to increase.
There are some virtual currencies that announced that they want to move to the new Binance Chain. One of these coins includes Mithril (MITH). Because of this announcement, the digital currency experienced a price increase of 60%.
Thus, Binance has a working product, it is expanding in the market and the project is expected to keep growing in the future. There are already many different sites and companies that are accepting BNB as a means of payment for goods and services, which also increases the possibilities that users have to use the digital currency.
Compared to January 2018, Binance has already a business strategy and model that proved to be successful. Their products and services have already matured and this can be seen with the acceptance of the crypto community. That means that the digital currency could keep growing in the future as well.
Binance is also burning BNB tokens each quarter. With 20 percent of its profits, the company purchases BNB coins and burns them. The intention is to burn 50% of the total token supply.
Binance Coin has now a price of $25.27 according to CoinMarketCap. This is a new record for the digital currency that seems to have enough buying pressure to keep growing even in the future. BNB is the 7th largest digital asset with a market capitalization of $3.57 billion.
The success of the Binance Chain and the decentralized exchange that Binance is going to be launching to the market will play a very important role in determining the future of the BNB coin. The Binance Launchpad with IEOs and the quarterly burning of coins will also reduce the supply of BNB coins and increase the price of the digital asset if the demand remains stable or if it increases.