Binance Coin Flips Stellar as Meteoric Surge Continues; Is Crypto Winter Coming to an End?
Binance Coin (BNB), the native token of the world’s largest cryptocurrency exchange, resumed its meteoric rise on Tuesday, pulling ahead of Stellar (XLM) for eighth spot in the market cap index.
BNB Price Update
The BNB price surged by as much as 23% to $13.82, its highest since early July. At the time of writing, it was trading at $13.36, having gained 19.1%. The token price is up nearly 40% over the past seven days and has more than doubled since the start of the year.
In doing so, BNB has zipped passed many of its peers on the market cap index. Its market cap on Tuesday approached $1.9 billion, easily overtaking Stellar as the world’s eighth largest cryptocurrency. Last month, BNB flipped Tron (TRX) and bitcoin SV (BSV) to enter the top ten. Prior to that, it overtook Monero (XMR), IOTA (MIOTA) and Cardano (ADA).
BNB trade volumes surpassed $200 million on Tuesday, according to CoinMarketCap. Nearly half (44%) of the daily turnover came against Tether, a dollar-backed stablecoin. The token has a circulating supply of 141,175,490.
Is the Tide Turning?
Binance Coin’s meteoric rise is a strong sign that the crypto bear market is on its last leg. It also suggests traders are differentiating between various cryptocurrencies based on fundamentals and other value metrics. During the depths of the bear market last year, bitcoin (BTC) exerted a strong gravitational pull on other cryptocurrencies. While that relationship still exists, some altcoins and tokens have clearly pulled away from bitcoin’s immediate sphere of influence.
For many in the crypto industry, BNB represents a true utility token for its role in facilitating trading on the world’s largest cryptocurrency exchange. As such, the token has benefited from strong fundamental developments surrounding Binance. The exchange recently announced the successful testnet launch of its decentralized exchange and has offered $100,000 worth of BNB as reward to users willing to participate in a simulated trading competition.
The Binance Launchpad recently completed its second token sale offering, with Fetch.AI raising a whopping $6 million in ten seconds. Binance CEO Changpeng Zhao confirmed that 19,860 people “successfully submitted a buy order” on the sale. Roughly 6% of the Fetch.AI supply was sold during the fundraiser. Read more: ICO Analysis: Fetch.AI.
Earlier this year, Launchpad facilitated the sale of BitTorrent Token (BTT), which raised $7.2 million in just 15 minutes.
Binance recently revealed that its native token is now compatible with over 35 services across seven use cases, including payment, travel/utility, service, entertainment, platform and cash. On the payment side, BNB is now accepted by HTC, Nexo, BytePay and ETHLend.
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.