Binance Coin Looks to Flip Bitcoin Cash with Latest Advance
Binance Coin (BNB) was eyeing another milestone Tuesday as the native token of the Binance exchange came within $150 million of flipping bitcoin cash (BCH) for sixth spot on the crypto market cap index.
BNB Price Update
The BNB price surged 6.2% to $15.24, where it was on track to re-test last week’s swing high. That high also marked a new eight-month peak for the native Binance token, capping of a parabolic surge that began at the start of 2019. BNB has gained a staggering 154% since the year began. By comparison, the overall cryptocurrency market is up just 7% over the same period.
BNB trade volumes amounted to $147 million on Tuesday, according to CoinMarketCap. Last week, volumes approached $270 million. BNB/USDT positions on Binance accounted for roughly a third of the daily volume. Roughly 25% of the turnover came from BNB/BTC trades.
The Binance token remains on a committed direction higher, as the bulls look to eventually test new record highs. This could come sooner rather than later as Binance continues to assert itself as the world’s leading virtual exchange. Also read: BNB the New Bitcoin – Gearing Up for New All-Time-Highs.
The combined value of all cryptocurrencies improved to $134.3 billion on Tuesday. Most of the majors had reported modest-to-sizable gains.
BNB to Flip BCH
The latest upsurge gave Binance Coin a total market capitalization of just over $2.1 billion, where it was trailing bitcoin cash by roughly $150 million. Unlike BNB, bitcoin cash has stagnated over the past month and is eyeing double-digit losses for the year. This makes another “flippening” event imminent in the not-too-distant future.
Binance Coin has surged through the market-cap rankings, breaking into the top ten in February and going on to jump another three spots to seventh. In just the last month, Binance Coin has flipped Tether (USDT), Stellar (XLM) and Tron (TRX). Read more: Binance Coin Flips Stellar as Meteoric Surge Continues; Is Crypto Winter Coming to an End?
The crypto market shakeup reflects an important decoupling trend between bitcoin (BTC) and some of its large-cap peers. BNB, Litecoin (LTC) and EOS (EOS) have shown the greatest price independence relative to bitcoin. This comes despite bitcoin maintaining more than 51% of the total market share of all cryptocurrencies.
Bitcoin’s gravitational pull on other cryptocurrencies tends to decline during bullish periods and rise when the market is going through a soft patch. The dominance rate for bitcoin bottomed near 36% in early 2018 before resuming higher as the bear market deepened. At the time, EOS was the only major altcoin to escape from bitcoin’s immediate sphere of influence (as a recap: EOS hit record highs during the crypto bear market).
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.
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