Binance Coin Price Reaches An All-Time High After Bottoming in December 2018, Up Nearly 300% in 2019
Binance Coin (BNB), the digital asset used on the Binance exchange DEX has reached a new all-time high a few days ago. The virtual currency grew over 287% since the beginning of the year and more than 455% since it bottomed in December 2018.
Binance Coin Expands In The Market
Binance Coin has been in the news in the last few weeks due to several reasons. The popular cryptocurrency exchange Binance has announced that it has launched its decentralized exchange (DEX) and the Binance Chain. BNB is going to be the currency used in this blockchain and decentralized exchange.
Binance Coin has been growing since it bottomed for different reasons. The first one is related to the fact that Binance Launchpad has attracted a lot of attention with Initial Exchange Offerings (IEOs). Users have to purchase BNB coins and hold them for a period of over 20 days to be able to participate form an IEO.
In this way, many investors decided to purchase BNB to be able to participate in these IEOs. Moreover, Binance is also burning tokens each quarter. The firm uses 20% of its profits to burn tokens and reduce the total supply. The main goal is to keep burning coins until the total supply is reduced by half.
Moreover, the exchange has released its Binance DEX in which the BNB token is the base cryptocurrency. This is one of the most awaited decentralized exchanges in the industry and it is expected to gather the attention of many investors. Until now, decentralized exchanges were not able to gather the necessary attention due to some issues with their user interface and performance.
The new Binance Chain has also been a very positive event for the platform. This has also affected the price of Binance Coin and it helped it reach its highest price ever when it surpassed $25 a few days ago.
JP Vergne, a Business School professor, explained:
“Besides, a new cryptocurrency may look more appealing than its older competitors at the time of introduction, but if it is not backed by a solid team of developers who continually improve is underlying software, over time it will be unable to maintain its initial technological advantage.”
At the time of writing this article, Binance Coin is the 7th largest digital currency in the market. Each BNB coin can be purchased for $23.2 and it has a market cap of $3.28 billion.