Binance Coin exceeded USD 300; thus, leaving Cardano, Polkadot, Tether, and XRP behind. The increase in operations on the exchange may have contributed to increasing the price of BNB.
In recent days, Binance Coin (BNB) exceeded its all-time high, both in dollars and in Bitcoin (BTC). In that way, the cryptocurrency of the eponymous exchange became worth USD 328, equivalent to 0.0061 BTC.
Binance Coin, which now ranks 3rd by market capitalization, outperformed Ripple’s Cardano (ADA), Polkadot (DOT), Tether (USDT), and XRP. Its price increased by 60% in a matter of just 24 hours.
The increase in transactions on the Binance exchange may have contributed to this increase in the price of Binance Coin. Users and developers also migrated from decentralized finance (DeFi) to the Binance Smart Chain. Furthermore, Changpeng Zhao, the CEO of the cryptocurrency exchange, has recently posted comments on Twitter and talked to the media.
Increase in Transactions on the Binance Exchange
Binance has grown to become the centralized exchange with the highest volume of money moved in operations. This may be one of the reasons that increased users’ interest in acquiring Binance Coin, which led its price to rise.
It is important to know that the users of the exchange have benefits if they own Binance Coin. For example, if they pay fees in that currency, they get a 25% discount on each transaction.
They can also “convert small balances”, this is, the remaining pennies from their buy and sell operations on Binance. Every 24 hours, they can activate this command to convert this small amount of money into Binance Coin.
The exchange also gives users the option to participate in the BNB Vault by depositing their Binance Coin there. The platform offers to pay users interest on a variable return in that currency, which it pays them every 24 hours.
Growth of the Binance Smart Chain
Binance Coin was initially an ERC-20 token built on Ethereum, but it then migrated to its chain. The Binance Smart Chain (BSC) uses Binance Coin as its native token. Its compatibility with the Ethereum Virtual Machine (EVM) allows it to execute smart contracts.
The high fees that Ethereum charges explain the increased use of the BSC, the blockchain on which developers create most DeFi platforms.
Many tokens developed on the BSC maintain parity in terms of their price with cryptocurrencies and tokens of other networks. In the blockchain, there are also tokenized versions of Bitcoin, Litecoin, Ether, Polkadot, DAI, and USDT, among others.
Furthermore, there are tokens of DeFi protocols built on the Binance Smart Chain. Among the best known are PancakeSwap (CAKE), Beefy (BIFI), and Venus (XVS).
Binance CEO’s Comments on Twitter and in the Media
Changpeng Zhao, Binance founder, and CEO, could have contributed to Binance Coin’s recent rally. He talked to Bloomberg about the Binance Smart Chain and decentralized exchange (DEX) PancakeSwap, built on this network.
This platform benefited from his sayings since it became the DEX with the highest trading volume. Uniswap, which has historically led this market, dropped to second place.
After the interview, Zhao posted a series of tweets, which may have also activated various investors’ FOMO. “Please get into ‘bull mode’ with me. When it happens, it just happens all at once,” he wrote. “Uniswap should consider moving to BSC. As it is not easy to run with weights on their ankles, they should follow their users”, he added.
By Alexander Salazar
