Binance Coin (BNB), one of the largest digital currencies in the market, has already gained over 600% since it bottomed in December 2018. Although the crypto market has also bottomed as a whole, Binance Coin shows to be the best performing asset among the top 10.
Binance Coin Becomes The Best Performing Crypto
The virtual currency market is currently experiencing a fast growth that is allowing virtual currencies to reach the same levels they had a few months ago. However, there are some digital currencies that are performing even better than others. Binance Coin is one of the largest winners in this competitive space.
Binance is one of the largest and most popular crypto exchanges around the world. Indeed, it has one of the highest trading volumes and trading pairs. Although the company was attacked a few weeks ago, it remains one of the most recognized platforms in the market. Indeed, Bitwise Asset Mangement released a report in which it informed that the crypto platform Binance had real trading volume compared to other exchanges that registered wash trading activities.
During May, Binance Coin grew around 110%, which means that the digital currency expanded 450% this year. One of the reasons behind this price surge is related to the fact that the exchange burns a large number of BNB coins. This is done with 20% of the funds that it gains from fees. In this way, the amount of BNB in circulation gets reduced and it will continue to do so until 100,000,000 BNB coins remain in the market. Thus, Binance uses scarcity as one of the main catalysts to its price increase.
Moreover, the virtual currency is used by investors in order to participate in the Initial Exchange Offerings (IEOs) that the platform conducts. Users must hold BNB coins for over 20 days in order to be able to participate. The decision was taken due to the fact that there may be some fluctuations in BNB trading before and after an IEO without lottery tickets. Those who hold a larger number of BNB tokens will have more lottery tickets that would allow them to participate in an upcoming IEO.
At the time of writing this article, Binance Coin the 7th largest digital currency in the market. The virtual currency has a market capitalization of $4.68 billion and in the last 24 hours, it has increased by 3.35 percent. Meanwhile, each BNB coin can be purchased for $33.13.
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For over two years, UseTheBitcoin has done the research, covered the news, and helped readers find the best blockchain projects. The one thing we keep coming back to is Binance.