Binance Coin (BNB) Price Defies Odds, Up 300 Percent in 2019
Binance Coin, the native currency to the world’s leading cryptocurrency by exchange, Binance, has continued to defy odds in its double digit price rally.
While Bitcoin made a strong push throughout the week to close at above $5300, BNB has been the standout cryptocurrency in terms of price movement. The majority of altcoins are experiencing a price regression, giving some indication that Bitcoin may be about to take off. Historically, the interim following industry-wide bull runs, such as the gains created throughout April have turned out favorable for the price of BTC. Investors, rather than cashing out in fiat or transferring to a stablecoin, instead flip their profits into Bitcoin.
However, Binance Coin has continued to gain value, moving against the trend of price consolidation impacting the majority of the market. On April 19, BNB closed on double digit price gains, and is up 4 percent as of writing.
Why Has BNB Price Continued to Rise?
Compared to most of the market, Binance Coin has managed to create a fair bit of utility that extends beyond price speculation. Ironically, the coin that is synonymous with the world’s leading cryptocurrency exchange has managed to generate what the majority of the industry is searching for: a reason to invest in and use outside of anticipated price gains.
Binance and CEO Changpeng Zhao have put together a series of programs that incentivize not only investing in BNB, but holding for longer periods of time. Not only can users conveniently “sweep” left-over and small amounts of currency into BNB, but the coin offers investors a discount on trading fees. The end result is that nearly every investor on BNB has ownership in or incentive to own BNB, increasing the familiarity and liquidity of the coin.
Binance has also instituted a new lottery program for its ICO Launchpad service, which features BNB prominently. As opposed to the old first-come, first-served model that Binance previously employed, the lottery relies upon users being issued tickets in proportion with the amount of Binace Coin they hold. However, investors hoping to participate in the lottery must keep the requisite amount of BNB in their account–as opposed to buying and then dumping the coin in short order–creating an artificial demand on the supply of Binance Coin.
Even without the most recent price rally for cryptocurrency, Binance has created conditions for their native exchange currency that has investors banking on future promotions. Much of the current investment into BNB driving up the price is anticipation that the exchange will continue to find ways to add value to the coin. Given the direction of cryptocurrency adoption, which has been positive and upward throughout 2019 and looking to turn exponential, current investors are looking to the flood of new traders that will enter the industry over the coming years.
Assuming Binance can maintain its position as the world’s leading cryptocurrency exchange, BNB is likely to become more valuable as an increasing number of investors participate on the exchange. While BNB is already up 300 percent since the start of the year, investors believe that number will continue to climb with overall industry adoption.