The popularity of Binance has led to a significant price jump in Binance coin. It has grown over 30 times in the last year and now sits comfortably as the 3rd largest cryptocurreny by market cap. In April, the price of BNB touched new heights as it almost doubled in market cap from $49 Bn to $96 billion. This happened as the price of BNB climbed from about $280 to a record high of $600. And now it has dipped a bit and is trading at $540.
The growth of BNB
The increasing use of Binance and the increasing market volume has been some of the major factors for BNB’s growth. Binance has a good referral program, low fees, and a lot of other features that make it one of the best exchanges for crypto. And when an exchange does well, its own token does well too. Take the example of WazirX (It is also owned by Binance) in India. It is the biggest platform in the country, and even its own token WRX has significantly increased in price during April. So, all these go hand in hand.
The growth of the Binance smart chain has also been a major factor in the price increase of BNB. It has already locked a total value of $31.3 billion and is constantly increasing. And since the Binance coin is needed to pay the fees of BSC, the usage of the token is rising. So, if the usage of BSC continues to rise, so will the price of BNB.
Binance Coin flipping ETH?
The transaction of Binance coin has increased significantly in the past few months. It is now twice the amount of Ethereum. But why? Ethereum is decentralized, but BNB is not. So, isn’t it supposed to be better and used more? Yes, but it at least doesn’t seem so. Users prefer the low fees of Binance coin over Ethereum. So, it does seem that in the long run, we could see BNB becoming the 2nd largest cryptocurrency by market cap. And if the price rise continues, it will happen very soon. However, we have to wait and see how the market reacts to Ethereum 2.0.
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