Within the last 48 hours, the entire cryptocurrency market has lost more than $5 billion in capitalization. Bitcoin and many other cryptocurrencies are trading in red in a market-wide sell-off. This isn’t surprising because a fall in the price of BTC is usually followed by a fall in the price of other cryptocurrencies. However, the case seems different today. One coin is soaring at a time when others are falling – Binance Coin.
Binance Coin Soars As Cryptocurrency Market Falls
The Binance Coin, which is now the native token of the Binance Chain, has been trading in green for the past 48 hours. The cryptocurrency increased by more than 16% during a sell-off that saw many other cryptocurrencies falling below significant support levels. Apart from the fact that BNB is up by 16% within the past 48 hours, the cryptocurrency is also up by 120% within the last twelve months. Keep in mind that Bitcoin and many other tip cryptocurrencies are down by more than 80% within this same period. This means that the cryptocurrency winter hasn’t affected the token of the world’s largest cryptocurrency exchange per trading volume too much.
Binance Coin (BNB) Price Today – BNB / USD
The Binance Coin has now become the eight largest cryptocurrencies per market capitalization and it is still soaring higher. In January, BNB had a market capitalization of about $800 million. At the time of writing, however, it held a market capitalization of about $1.8 billion.
Why Is BNB Rising?
It’s true that BNB hasn’t reached its all-time high of about $24. However, it has proven that it is possible for a cryptocurrency to thrive even when the price of Bitcoin falls against the USD. This is what eTros senior market analyst, Mati Greenspan said about the rise of the coin:
“Binance coin has been able to buck the crypto correlations principally because people buy it as a way of speculating on industry growth. If the markets are moving it means people are trading, and Binance has a big share of those volumes.”
His logic is reasonable and supported by technical analysis. You see, the cryptocurrency exchange, Binance, moved over $20 billion in BTC between the 15th of November and the 15th of December 2018. The exchange has been recording a lot of success recently. In February, Binance launched a testnet for its decentralized exchange as reported by smartereum.com. At the time, the CEO of the company, Changpeng Zhao, said that the decentralized exchange is going to be user-friendly, secure and fast among other things.
The company also announced that it would be migrating the BNB Coin from the Ethereum blockchain to the Binance Chain. The Binance Chain is also being used as a host for the DEX network. The decentralized exchange is going to be a success because many traders prefer to use decentralized exchanges rather than the more popular centralized exchanges.
The company also announced an incentive scheme that will aid in the development of the exchange. Changpeng Zhao said that users testing the network will receive $100,000 in BNB. Before now, Changpeng Zhao said that his company has enough funds to keep running even if the bears in the cryptocurrency market continue dominating the bulls.
Do you think the Binance Coin will be able to sustain the gains against the USD if the price of BTC continues to fall? Share your opinion in the comment section.