Binance Coin, the star performer of the altcoins, has just pumped 20% – why? And is it about to overtake Tether and Bitcoin Cash in market capitalisation?
One month ago it was 11th, six months ago it was 16th and 12 months ago it was 25th. Binance has been steadily climbing the rankings like no other cryptocurrency. It’s now approaching two billion dollars in market capitalisation, with Tether and Bitcoin Cash in its sights. But will it overtake these two cryptocurrencies? Could it even displace Litecoin to reach the top five?
Here are seven reasons why it’s doing so well where many others fail:
1. Binance Coin (BNB) is a utility coin with utility
The strongest case for HODLing Binance Coin (BNB) is to save 25% trading fees on Binance. Given Binance is the world’s biggest crypto exchange, that makes for some serious HODLing. In addition, there has been progress on using BNB in the real world for spending on goods and services – for instance last year Binance invested in TravelbyBit, an Australian startup that equipped more than 150 establishments, including the entire Brisbane Airport, with the ability to pay for goods and services using BNB.
2. Binance Coin is a safe haven cryptocurrency in times of volatility
When it gets squeeky bum time in crypto, BNB has become the crypto of choice to ride out the volatility. This is partly because of its utility to save on trading fees, but also because of a general distrust in stablecoins such as Tether.
3. Binance Launchpad is showcasing some exciting projects
Binance Launchpad is one of the few successful ICO platforms right now – perhaps the only one. The projects it’s launched so far – Bittorrent and Fetch.ai – have both sold out in record time. Where else is there a similar sense of FOMO for ICOs? It brings back memories of late 2017. However, to participate you need BNB – and there’s only one place to buy it.
4. Binance and Tron
Like it or loath it, Tron has some significant backers – especially in China. Also, between them CZ, the CEO of Binance and Justin Sun, the CEO of Tron, are two of the biggest celebrities in crypto. A lot of people are excited about the collaboration in launching Bittorrent in January.
5. The Binance Burn
Binance has an ongoing commitment to decrease the total supply of BNB in the market. Every quarter since it launched, Binance committed to using 20% of its profit to buy back Binance Coins and burn them permanently. In the law of supply and demand, less supply means more demand.
6. Binance does Fiat too now
Its recently launched subsidary, Binance Jersey, now offers fiat trading with GBP and EUR.
7. The Binance DEX
Binance is putting its weight behind its decentralised exchange, Binance DEX. A DEX uses a decentralised network of nodes, where you hold your own private keys and manage your own wallet. A lot of people in the cryptocommunity are excited by the prospect of a serious DEX.
Binance Coin has a lot going for it – especially when you compare against Tether’s spotty reputation and the in-fighting around the Bitcoin Cash fork. With all things considered, perhaps Binance Coin is going to carry on rising up the rankings…