Binance Coin (BNB) Price Climb Continues, Hits New All-Time High
The unreal price climb for Binance Coin (BNB), the seventh largest cryptocurrency by market capitalization, has continued into the fifth month of the year.
On January 1, 2019, Binance Coin was trading for $6–down from the currency’s all-time high of $24.50 just a year before. While BNB had fallen more than 75 percent in value over the course of 12 months, the coin was largely suffering from a similar fate as the broader cryptocurrency markets. After one of the most epic bull runs to conclude 2017, the entire cryptocurrency marketplace collapsed in a downward spiraling for price that would last throughout the year. Traders began referring to 2018 as the “crypto winter” for Bitcoin and altcoins, with assets across the board falling 90 percent or more in value.
Binance Coin (BNB) Hits New All-Time High
On May 19, Binance Coin crossed the $29 mark, establishing a new all time high for the cryptocurrency and increasing its gains to more than 380 percent since the start of the year. While 2019 has been a profitable year for all of cryptocurrency, particularly since the start of April, Binance Coin has continued toa outpace the pack in returns and gives some indication of the investment mindset for traders entering the market.
Binance Coin may lack the flashy quality and household name status of Bitcoin, but the currency is providing investors will a feeling of utility that extends outside of price speculation. Ironically–given the it’s roots in leading cryptocurrency exchange Binance–BNB is becoming one of the premier coins on the market, with the digital asset benefiting from the actions of Binance CEO Changpeng Zhao and his team.
Plotting Binance Coin Growth
Compared to other cryptocurrencies, which function largely at the behest of small development teams and the decentralized communities they engender, Binance Coin has the exposure of the millions of traders utilizing the exchange. In addition, Binance has been clever over the last year in implementing programs to increase the intrinsic value of traders to not only invest in Binance Coin, but also hold the currency long-term, thereby driving up the price demand.
Not only does paying in BNB offer Binance users a discount on trading fees, but the currency can be exchanged for small amounts of leftover coins through the “dust” program. The tiny fractions of cryptocurrency accumulated in incomplete market trades can be swept, like dust, into a pool redeemable for Binance Coin. Therefore more traders accumulate BNB, at times unknowingly, while creating a process that contributes to the purchasing demand for the currency.
Binance also revamped its launchpad service to heavily favor the long-term purchase and holding of BNB. Compared to its previous model, where investors in new coin launches were able to buy on a first-come, first-served basis, Binance has now implemented a lottery system utilizing BNB. For every 100 BNB a trader holds in their account, they are a eligible for one lottery ticket which can be wagered in the purchase of new coin launches (up to a maximum of 500 BNB, or five tickets). However, would-be investors are required to have the requisite amount of Binance Coin in their account wallet during the 20 days leading up to the lottery–thereby preventing boom and bust cycles to acquire tickets.
The end result has been a substantial increase in demand for Binance Coin, in addition to creating a feedback cycle that has the currency featured–on one of the world’s leading exchanges–as a regularly top performing cryptocurrency.
Disclaimer: Investing in cryptocurrency is inherently risky.