While cryptocurrencies prices are still in slumber mood there are very few coins that are actually outperforming the markets. One such coin is Binance’s native coin BNB which is standing strong in the storm and ducking the bear forces.
#BUIDL is keeping BNB positive despite market slowdown
According to experts, coins with real use cases and which continue to #BUIDL are expected to outperform the markets. While there are many coins in the market, not many coins are able to meet these criteria. But one coin that clearly stands out amidst all others and qualifies on both criteria is Binance’s native coin BNB.
Technically, here’s a graph that shows $BNB (in green) against $BTC (white) over the last four months. Notice how it got punched by the November plunge but has since diverged from the general sentiment.
It seems that this unique token can sometimes be more correlated with exchange volumes than it is with the prices of other cryptos. The reason for this is pretty simple, many people who buy it are actually speculating on the notion that the crypto industry will continue to grow and that Binance will maintain a significant share of that. In addition, it is considered a deflationary asset. Supply does not grow over time but rather decreases due to their periodic token burns.
Fundamentally too the coin is doing great. A report released by Mati Greenspan of eToro released a report on Binance a couple of months back which listed some great positive facts about the coin. This included
- Changpeng Zhao (CZ) has become one of the most influential figures in the crypto space
- The coin has a specific use case as it avails specific discounts on the exchange when a user uses BNB to pay of his trading fees. The scheme of discount is – 50% during the first year of operation; 25% during the second (current discount); 12.5% during the third; 6.25% during the fourth; and zero discounts after that
- The other use case of BNB is that it is being used to support and investing in new ICOs on the platform’s launchpad
- Incentives for users to hold more BNB such as increment in referral bonuses
- BNB finds its use case for buying goods and services
- Binance’s new decentralized exchange which is being developed will use BNB for trading fees
- Binance is creating a Binance Chain that will allow BNB to migrate from an ERC20 token to the new blockchain
The price rise in BNB is clearly justified as BNB is getting stronger technically and fundamentally. BNB looks a definite coin that will sustain in the long run and reward its holders
Do you time BNB could be Amazon of crypto world? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.