Binance Coin (BNB) Records All-Time High After 43% Weekly Growth; Where Next?
Binance Coin (BNB) soared to a new all-time high this weekend after it recorded 43% growth over the past seven days. Now the coin’s previous ATH from the January 2018 megapump seems like a blip in comparison.
But after recording 593% growth since the December low, one has to wonder where BNB goes from here. The recent hack seems only to have strengthened belief in the security of Binance and its associated token. And with no resistance to point to on the technical charts, BNB finds itself pushing forward into unknown territory.
Binance Coin Price – BNB/USD
From the weekly low of $20.39, the value of BNB shot up to $29.33 over the course of seven days.
That equates to 43% growth, and leaves Binance Coin just behind Litecoin by market cap.
The daily surge carried BNB from $25.79 overnight – marking 12% growth before Bitcoin and the gang caught up. Indeed, Binance Coin refused to take a serious dip this week, while its cryptocurrency peers took a brief nosedive.
One questionable aspect of BNB’s pump might be the $557 million daily trade volume shown by data aggregators. Even OpenMarketCap’s more conservative estimates place BNB volume at $337 million. Although, given that Binance is still regarded as a ‘Real 10’ exchange, we may just have to take that claim at face value for now.
Speaking of volume, if ALL of Binance’s trade volume is legitimate, then that means Cybereits (CRE) and Matic Network (MATIC) are traded more than EOS, Cardano, Stellar and TRON combined. This seems highly unlikely.
Nothing But Good News for Binance Coin
One thing to note here is the absolute domination of positive headlines by BNB in recent months. Tokens such as Mithril (MITH) and Red Pulse Phoenix (PHX) left their former homes on Ethereum and NEO respectively, and migrated onto the Binance blockchain. That was met by major pumps for both tokens, although the peak proved short-lived. In the past week both CanYaCoin (CAN) and Atomic Wallet Coin (AWC) also made the switch.
Following the Binance hack the stock of CZ and the Gang only seems to have risen. Even CZ’s suggestion to ‘roll back’ the Bitcoin blockchain with a reorganization didn’t draw the ire expected of such a request.
This thought was echoed by a Twitter user and retweeted by CZ recently. The user wrote:
“Pretty crazy to think that @binance lost 7000 BTC to hackers, went through a long phase with withdraw and deposits being down, went through maintenance last night for about 10 hours or so, and yet I’m more bullish on $BNB and @cz_binance now than ever.”
Pretty crazy indeed – and basically unprecedented in the crypto space.
All That Glitters is Not Gold
One unproven theory doing the rounds is that Binance demanded low-volume altcoins switch from Ethereum to Binance Chain – or else they’d find themselves kicked off the trading platform.
This can’t apply to all the tokens listed above, since CanYaCoin and Atomic Wallet Coin weren’t on Binance to begin with.
However, the allure of having an automatic listing on Binance just by migrating to the Binance Chain may be what’s drawing people in. If this is the case, it would represent a cheaper way to get listed on Binance than having to pay millions of dollars – as has been claimed of CZ and Binance in the past. It also focuses the ever-tightening noose of centralization around the neck of one platform – which at this point is getting perislously close to the ‘too big to fail’ category.
On Sunday morning, hours after recording an all-time high, Binance continued to entice users to hold Binance by promoting its Harmony Protocol (ONE) token. A portion of tokens will be distributed for free to BNB holders, as per the Binance lottery. The token sale takes place at midnight on Sunday.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.