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Binance Coin has had a remarkable performance since the beginning of 2019. Up more than 315% since January 1st. BNB has managed to exceed its former record values of January 12, 2018.
The first to violate the old USD ATH
As Bitcoinist reported earlier this week, Binance Coin is one of the most successful crypto-currencies, with a decisive year against Bitcoin.
BNB 00 continues its rise not only against BTC, but also against the US dollar. Cryptocurrency has managed to become the first to surpass its previous ATH value against the US dollar, which was reached in January 2018 – as it approached the peak of the historic uptrend of 2017. At the time, BNB was trading at $ 24.46.
Binance Coin is also doing very well against BTC.
At the time of writing these lines, BNB is up about 13% over the last 24 hours.
Reasons for rising BNB
It's safe to say that BNB's strong performance in 2019 is not attributable to a single reason. Let's see some of them.
Utility
The main purpose of Binance Coin was to allow traders to receive significant discounts on trading fees when they used BNB to pay for them.
According to the official white paper, those who use BNB to pay their fees will receive a 50% discount in the first year, 25% in the second year, 12.5% in the third year and 6.75% in the fourth year. This applies to Binance's redemption fees, withdrawal fees, registration fees and other potential fees.
BNB Burning
The initial offer of BNB was set at 200 million euros. However, the Malta-based stock exchange has announced that it will destroy the BNB equivalent of 20% of its quarterly profits until 50% of all coins are burned, leaving only $ 100 million BNB in circulation.
Up to now, there have been seven quarterly burns, which removed a total of 10 677 344 BNB from the circulation.
- Initial exchange offers
Binance was also the first cryptocurrency switch to start offering initial exchange offers (IEOs). Essentially, these are fundraisers in which the stock exchange selects a given project, issues tokens via a dedicated platform and lists them immediately for trading, once the IEO is finished.
The problem, however, is that you can only use the native token from the exchange to participate. Therefore, those who wish to buy in an IBE led by Binance should first buy from the NBB. More so, Binance has put in place a new rule that requires people wishing to participate to hold BNB at least 20 days before the event.
Until now, Binance Launchpad has completed four IEOs, each of them having completed in a few seconds with thousands of people lining up to participate.
Chain of binance
Another important development around Binance has been the recent launch of its main network for Binance's decentralized exchange channel.
This has created a hype in the cryptocurrency community, particularly as each crypto migrating to Binance Chain detonates its prices.
Changpeng Zhao
Community sentiment certainly plays a role in the price of crypto-currencies, and Binance's CEO, Changpeng Zhao, is one of the most prominent figures.
Not only does he constantly portray Binance's achievements, as well as those of other projects that attribute the global adoption of cryptocurrencies, but he also manages to attract many people into the field. This became all the more true after he kept his promise that Binance will remove Bitcoin SV from the list, following Craig Wright's ongoing quarrel with some members of the community.
The above is just a few of the reasons for BNB's strong performance. However, with the exchange of Binance chips in a few days, it is interesting to see if BNB will maintain its stable trajectory upward.
Is the NBB in the lead of the next bull market? Let us know in the comments below!
Images via Shutterstock, Bitcoinist archive
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