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The slightest doubt about the return of crypto during a rise could have been erased, since Binance Coin (BNB) has just become the first major cryptocurrency to break its record of January 2018. Binance Coin has grown exponentially since beginning of the year, when he was trading at $ 6.01 the token. Binance Coin has now set a new absolute record above $ 25. Although it has declined slightly over the hours since, it seems likely that it has the momentum to go further in the weeks and months to come.
Binance Coin's performance is particularly impressive compared to the recent price performance of other crypto currencies. On January 12, 2018, when Binance Coin reached its highest record of $ 24.46, most of the altcoins enjoyed similar races. Binance is now ranked 7th largest market capitalization cryptocurrency; in January 2018, he was not even in the top 20.
Last month, we asked if Binance Coin was about to dissociate itself from Bitcoin. Recent price performance has answered this question with a resounding "yes". The increase in Binance Coin's sales in the first four months of 2019 far outpaced other crypto currencies, including Bitcoin. Binance Coin's previous record was set at 0.0026 on June 18, 2018, after reaching an all-time high. Last February, BNB once again exceeded its absolute record and has not stopped rising since then. At the moment, the NBB is trading at 0.0047 BTC, nearly double its previous BTC summit.
At each measurement, Binance Coin is on fire right now. Binance regularly buys and "burns" its chips, which means the supply in circulation is now lower than it was at the time of its previous summit. Thus, while the market capitalization of the NBB was $ 2.4 billion at the peak reached in January 2018, it now stands at $ 3.5 billion. The volume of its transactions over the past 24 hours has averaged $ 443 million. This figure is lower than the record $ 521 million in NBB transactions traded in January 2018, but is another area of explosive growth. The volume of transactions was less than $ 200 million just 48 hours ago and less than $ 40 million on January 1.
In summary, Binance Coin has seen its price increase by 4x and its volume by 10x since the beginning of the year. So, what motivated this explosive growth?
A busy week for Binance
The rise in the number of NBBs to a new all-time high follows a week of significant announcements from Binance. On Monday, Binance's managing director, Changpeng "CZ" Zhao, threatened Twitter with withdrawing from the Bitcoin Cash SV platform if its creator, Craig Wright, continued to claim to be Satoshi Nakamoto, the anonymous creator of Bitcoin. On Wednesday, CZ confirmed next week the launch of the bin-crypto-crypto bridge of Binance in Singapore. And Friday marked the long-awaited launch of Binance Chain, CZ confirming that BNB chips would be moved from Ethereum to the new main network on April 23rd.
The cancellation of Bitcoin Cash SV reminded how important a Binance list could be for cryptocurrency projects. Prior to the announcement of delisting, Bitcoin Cash SV was trading at over $ 73. 24 hours later, he had fallen below $ 55, losing more than 25% of his value.
Other announcements are a reminder of the speed with which Binance is expanding its operations. Binance has long been consistently ranked as the largest crypto to crypto exchange in terms of transaction volume, but in 2019 it quickly spread to other areas. Other stock exchanges hastened to follow Binance's initiative in launching new tokens via the initial exchange offers (IEO).
Much of the excitement surrounding the creation of Binance Chain lies in the fact that it will provide the framework for a decentralized version of the Binance exchange. Decentralized exchanges (DEX) have long been considered as a serious threat to the dominance of centralized exchanges because they allow users to trade directly with their own portfolio, eliminating the risk of crypto-currency centralized exchange. Although Binance's success is largely based on its reputation for trust in encrypted space, hackers and other incidents have resulted in the loss of user funds on countless exchanges over the years, the infamous 2014 Gox is responsible for the most recent loss of access to funds following the death of the owner of the largest encryption exchange in Canada, QuadrigaCX. The creation of his own DEX account means that Binance has been able to guard against what was probably the biggest long-term threat to its business model.
Chip etching and increased utility pushing BNB higher
The incredibly strong recent performance of Binance Coin is the validation of the steps Binance has taken to add value to his piece. Regular rounds of redemptions and token burns were one of the many effective methods that Binance used to raise the NBB's price. The last token burn took place in mid-January. Binance destroyed 1 623 818 BNB, the equivalent of about $ 9.4 million in chips. Previous burns had already seen up to 2.5 million BNB destroyed at a time. A total of 10,824,471 BNB were destroyed in six rounds of quarterly token burns. The calculation of this process is simple: the fewer tokens, the more value each chip has. Binance spends quarterly 20% of its quarterly profits on the purchase of tokens to burn. This process is expected to continue until 100 million NBBs have been destroyed, representing 50% of the total.
Since its launch, Binance Coin has been used primarily to reduce trading fees on the Binance platform. When users choose to pay a negotiation fee via BNB, they benefit from a 25% reduction in transaction fees. And as the largest crypto to existing crypto exchange, this means that there will be a demand for BNB tokens as long as the exchange will remain popular.
The launch of Binance Labs earlier this year added another dimension to the utility value of BNB. In the same way that the explosive growth of Ethereum in 2017 was motivated in large part by the need to buy the ETH to participate in the offers ICO (Initial Coin Offerings), the users participating in the sale of chips via Binance Labs can pay with the NBB. Binance Labs has achieved several token sales successfully so far this year. The launch of the BitTorrent token supported by TRON in January was the most remarkable.
Other exchanges have followed Binance's tendency to provide a platform for the OIE, although some of their efforts have highlighted the precision with which Binance has executed the concept. KuCoin and Bittrex's first IEOs were all sold in a few seconds, but many said it should have been impossible given the steps required to complete the token sales process, which led to accusations that the two chip sales were diverted by bots. But the IEO concept has been an indisputable winner for other exchanges, with Huobi Coin and KuCoin Shares having more than doubled in value since the beginning of the year. However, the proliferation of IEOs shows that Binance sets the tone for its competitors.
The effect binance
Bitcoin Cash SV is not the first cryptocurrency to feel the consequences of a radiation from Binance. Binance regularly removes parts from its platform for a variety of reasons, whether it is a fraudulent activity by the project team or simply a small volume of exchanges. This radiation often occurs in batches, as in February, when Binance announced its intention to remove CLOAK, MOD, SALT, SUB and WINGS from the platform. The value of these chips dropped an average of 56% shortly after the announcement of their cancellation.
For many in cryptocurrency, a Binance list is a sign of legitimacy. Few exchanges are closer to Binance in terms of trade volume, which means that chips outside the Binance ecosystem are much more likely to be "pumped and dumped" or otherwise manipulated. In an article about the launch of Binance Chain, The Block Crypto quoted representatives of Decred and Stablecoin Paxos, explaining the importance of a Binance list for their projects. The manager of the management of the dead ads, JZ Zeppettini, has described Binance as "a main liquidity center" for cryptocurrency and "an essential exchange for most traders", while a spokesman for Paxos said:
"Given the size of Binance and its volume of transactions, this is of course a very influential exchange and we knew that it would be very useful for PAX to be listed in Binance … It's as if The Impossible Meat Burger was now at Burger King – it's more meaningful than it's available at just a certain store. "
Some now think that being on Binance Chain could become just as important in the near future. Two days ago, the decentralized social media platform Mithril announced in a blog post that it was the first Ethereum migration project to Binance Chain. The article by Block Crypto says that Binance "is trying to take advantage of the influence it has on symbolic teams to convince projects to migrate to Binance Chain," citing an employee. an anonymous project that apparently received an email from Binance that would threaten serious consequences. do not make the change:
"Well, let's just say that projects that delegate part of their chain of Ethereum to the Binance chain will receive favorable treatment – and those who do not could be removed from the list if their volumes are less than 1. million dollars a day. "
Another anonymous crypto official would have made similar allegations:
"Binance is trying to put everything in his chain … They bet that violating the law would work because they will move to a totally decentralized chain … To succeed, they must make sure that everyone is in this chain. . Interestingly, they built their whole business around Ethereum. What is Binance without Ethereum?
Whether the allegations contained in the article are true or not, there is no doubt that the major changes that Binance has made this year have seen it move beyond the mere exchange of cryptocurrency. Binance Chain being considered a competitor of Ethereum, Binance's mandate, which is in full expansion, is seen by some as part of the battle to become Crypto's Google.
Is Binance becoming "The Google of crypto"?
The upcoming launch of a crypto-to-fiat exchange in Singapore follows the launch of a Jersey-based gateway to convert euros and pounds into cryptocurrency in January. In recent months, Binance has launched a similar service to Uganada and also offers bitcoin purchases at 1,300 sites in Australia. Following the announcement in Singapore, CZ told CoinDesk that Binance was also planning an expansion into the US, although it was not willing to discuss it in detail.
Coinbase currently dominates cryptocurrency purchases in the United States. Binance and Coinbase have increasingly begun to overlap in the range of services provided by each, moving away from their original distinct roles of being crypto to crypto exchanges and fiat to crypto exchanges. We discussed the growing competition between the two platforms last month.
Binance's latest moves and the incredibly positive effect they have had on the NBB's price show that his efforts to become an all-powerful entity in the cryptocurrency space are progressing.
Sure Christopher Williams
Christopher Williams is a British writer based in South Korea who is particularly interested in emerging technologies, cryptocurrency and the development of decentralized applications.
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