The recent cryptocurrency price rise gave way to plenty of investment opportunities. Many investors are flocking in the crypto space, hoping to get a chunk from the price rally. Binance, one of the biggest cryptocurrency exchanges, has been making headlines. Many developments in their timeline made their token Binance Coin (BNB) Boom to new heights. This token became the third biggest cryptocurrency by market capitalization. What caused BNB to BOOM? Is it still a good idea to invest in this token?
Binance Boin (BNB) – What is BNB?
Initially, Binance was founded back in 2017 as a full-fledged cryptocurrency exchange. They later introduced many other coins and became one of the biggest crypto exchanges. They also added to their offerings many services such as a P2P platform, and DeFi staking. Changpeng Zhao founded Binance, an avid developer who was previously into high-frequency trading. After its inception, the company introduced the Binance Coin (BNB). BNB is an ethereum-based (ERC-20) utility token. It is used to trade cryptocurrencies and pay fees on the Binance exchange.
Why is Binance Coin hyped?
It is no secret that Binance is doing wonders in the crypto sphere. Being a successful exchange not only portrays confidence in the project but long-term stability for the whole crypto industry. Binance managed to successfully onboard newcomers and retain its customer base by constantly enhancing its platform, adding new coins to its offered assets, and integrating new concepts such as DeFi and Crypto Lending/Staking. When Binance as a company becomes more valuable, its token BNB would in turn increase in value.
The recent BNB hype comes as the company recently introduced stock tokens. “STOCK TOKENS? WTH man, new lingo every day!”. Not to worry, let’s explain.
Stock tokens are zero-commission digital tokens that are fully backed by the underlying security. Holders of the stock token technically own the underlying real stock indirectly and are entitled to any capital appreciation or even stock dividends. Capish? They are also denominated with the BUSD stablecoin. Incidentally, the first Binance stock token to be listed is the Tesla stock, which already has been making headlines in the news.
So let’s recap, Binance having a huge user base, Binance Coin skyrockets, Binance introduces Tesla stock token…BNB price should definitely continue to grow…This brings us to the next section of this article.
Is Binance Coin (BNB) a good investment?
Technically, talking about if BNB is a good investment is like asking if Binance as a company is in good standing. The answer is a definite YES. As stated previously, Binance continues to breakthrough in the crypto world and is advancing non-stop. Owning BNB is like buying a share of the company, and here are some quick stats that look interesting:
- $15 billion in 24-hour all-time-high spot trading (up by 5 billion compared to 2019)
- $3.88 billion average daily trading volume (up by 36%)
- 184 tokens listed on Binance (up from 151)
- 591 trading pairs on Binance (up from 396)
- 7,000,000 USDT in recovered funds by Binance Customer Service for 3,109 users this year. (Total funds recovered since 2017 is 15,000,000 USDT)
- Stock Token introduction
Binance Coin Price Prediction – Can BNB reach 1,000$?
BNB managed to recently surpass many cryptocurrencies to become the third-largest by market capitalization. Its current price is sitting around USD 545 with a market cap of USD 84 Billion (not too shabby for a company that launched in 2017). With the introduction of the Tesla stock token, Binance will eventually enlarge its stock token listing and include further stocks. More crypto users will definitely flock to the exchange in order to benefit from all those offerings. It is very rare to find such a project with many interesting and solid products.
From a technical standpoint, before jumping to the USD 1,000 price mark, we need to understand “price breathers”. Nothing goes up without adjusting back down. Even if good news seems to linger around the asset, a small retracement is very important. In fact, most investors who are on the fence whether they jump into buying in, wait for such price corrections to buy, sending prices even higher. Specifically, if prices fall below the price of USD 530, expect a further dip maybe below USD 500. So long story short, an adjustment should take place, then buy, then hold…as simple as A B C.
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Rudy Fares