Binance Coin, or BNB, recently edged past BSV to become the number ten cryptocurrency by market cap. That’s good news for the coin, but what does it actually mean?
Binance Coin is the native token for the Binance exchange, which is one of the biggest crypto markets by daily volume. You can use it for buying and selling other currencies, to reduce trading fees by 25 percent. Every three months, Binance uses twenty percent of their profits to buy back some BNB tokens and destroy them, which helps to maintain the currency’s value.
By why is it soaring now? One possible reason is Binance Launchpad, which just held the first big ICO of the year. The BitTorrent token sale collected 7.2 million dollars in only fifteen minutes, leaving many traders wishing for more. Another token sale is planned for Fetch.AI, and it’s currently scheduled for February 25As .
There’s more good news. Binance recently launched credit card support, allowing users to buy coins a Visa or MasterCard. They’re also developing their own blockchain and decentralized exchange, where you’ll be able to trade without any third party intermediaries, and teasing us with upcoming features like native support for hardware wallets.
BNB/USD Price Action
Having recently made it to the top 10 largest cryptos by market cap, Binance's price action seems to have picked up.
Binance Coin: BNB/USD Price Action Analysis
After bottoming out at $4.38 back in December, the BNB/USD pair has started a gradual uptrend which resulted in a break above some key pivot levels as well as the daily Ichimoku Cloud. While we could see a pullback towards $7 in the near term, the bulls appear to be in charge at the moment. So the next stops for BNB could be $9 and $11 respectively. It still may take some time for BNB to reach the all-time-high level of $25 or even break above it. Of course, on Bincance exchange you can only buy BNB versus crypto tokens like Bitcoin so you need to convert this technical analysis accordingly.
Disclosure: The author personally owns some BNB along with other tokens.
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