Binance as the third largest coin

[palle11]

On Feb. 10 Binance Coin (BNB) hit a new all-time high at $148 after the native exchange token rallied 121% since the start of the week.

After the above was a new story of binance now hitting a surprising ATH. IMO bnb has been a magic revelation for cryptocurrency. It has taken over from top coins and now trading behind etheruem as number three spot , this is amazing and a regret to many who sold off in fear back in 2017 when the price was selling slightly above $3. Now after two years, it has done more than 480x against bitcoin (according to the CEO)

There are some factors I think are possible a reason for the bnb

1.Surging volume

Between September 2020 and December 2020 the price of BNB traded between $23 to $35 with an average daily volume of $400 million. Since Dec. 28 there has been a steady increase in 24-hour trading volume and token price as Bitcoin (BTC) price broke out to new highs and DeFi made its presence felt across the crypto sector.

BNB’s 24-hour trading volume surpassed $1 billion for the first time on Feb. 1 and a new record $7.52 billion volume record was set on Feb.10 as the price crossed above $148.

2.DeFi integration gives Binance an edge

Since 2020 centralized exchanges had been ceding market share to decentralized finance protocols which offered users access to newly launched tokens and high APY returns for providing liquidity.

To make up for this loss of market share, Binance incorporated new DeFi components, including the creation of Binance DEX which supports a few interoperability-focused DeFi projects.

Binance also increased the number of tokens available on its staking platform and the exchange raised the interest rates for each token to encourage investors to stay on the exchange instead of chasing yields at SushiSwap and Uniswap.

BNB plays a role in fee settlement and transfers, thus boosting its volume and value over the past few months.

3. New listings and partnerships

Binance has not been shy about quickly listing new projects from the DeFi sector and these listings often spark a sharp increase in the trading volume and price of the newly listed token.

For example, when Uniswap and SushiSwap burst onto the scene and threatened to take some of Binance’s trading volume, the exchange countered by listing both UNI, SUSHI and many of the projects that were attracting investors’ attention.

Several prominent DeFi projects were initially launched on Binance Launchpad, the in-house token launch platform that helps blockchain projects raise funds, and more projects being added on a regular basis.

Projects like Kava, which operates on the Cosmos (ATOM) blockchain, and Venus (XVS), which operates on the Binance chain, were incubated on Binance Launchpad and have since become established DeFi projects that continue to gain momentum.

A scroll through Binance’s Twitter feed shows daily announcements of new partnerships and integrations and for investors to interact with many of these projects they are oftentimes using BNB as part of the transaction.

With a 24-hour trading volume of $32.8 billion, a figure 7 times larger than its closest competitor Coinbase Pro, Binance continues to dominate among centralized and decentralized exchanges.

Binance Coin appears well positioned for further growth, especially considering that BNB is an integral part of many of the platforms and processes at Binance.

The last point about listing new project is an eye opener. This is purely a business strategy to armtwist a competitor. It is stating the obvious that binance exchange won't irrationally list acoin without sequel benefit to the exchange.

However, the CEO Changpeng Zhao

noted that BNB has been setting new all-time highs not only in fiat terms, but also in relation to the world’s largest cryptocurrency, Bitcoin (BTC). “From a humble 0.00001 BTC per BNB, we have grown 480x against BTC in the last 3 and half years,” Zhao wrote. He said that BNB’s performance against BTC has been the main goal of Binance:

“This has always been our goal, to grow a bit faster than BTC. Not over taking it, but with so much effort we put in, we want to see it grow a bit faster. Otherwise, we should just buy BTC and not work.

With the state by the CEO, do you think he is working harder to overtake etheruem or bitcoin    

https://cointelegraph.com/news/3-reasons-why-binance-coin-bnb-hit-a-new-all-time-high-at-148

[1714791090]

1714791090

[mk4]

The pretty obvious reason in my opinion: Ethereum's fees have been quite high for a while, and Binance Smart Chain(BSC)'s fees are drastically lower. And yes, BSC is like magnitudes more centralized than Ethereum, but it comes to show how a lot of people don't care that much if a certain project is decentralization or not as long as they can make their bets on certain tokens.

[AB de Royse777]

In a bull run everything looks very easy, you feel you are winning money in whatever coin you are investing but if you compare with the gain against BTC then it's not much. Only few coins are performing. BNB is one of them.

I do not trade but the rerecnt growth of BNB do gives me some regrets LOL

Few months ago when I was buying some NEO and noticed there are 50% less fees in BNB - I was tempted to buy some and store it only to pay the fees. It was around $24 - $27. I wish I would use few grands :-D

[mersal]

Cryptocurrencies mostly used for trading purposes until now and Binance is the exchange which is having more trading volume and they offer discounts on the trading fee if they have BNB in their wallet then every trader frm Binance is going to have it that is the basic reason why it was surging in volume in the past but in the recent times BSC is the reason why it went to new heights and ethereum network should be blamed for this not the hardware of BNB team.

[nelson4lov]

~Snipped

With the state by the CEO, do you think he is working harder to overtake etheruem or bitcoin    

I don't think cz is trying to overtake either Bitcoin or Ethereum. He's just doing whatever it takes to stay relevant in the business. Binance isn't the first exchange to experience peak success but they're doing more to ensure that they remain on top of the food chain. That's what the hype about Binance smart chain in the recent months has been all about.

The pretty obvious reason in my opinion: Ethereum's fees have been quite high for a while, and Binance Smart Chain(BSC)'s fees are drastically lower. And yes, BSC is like magnitudes more centralized than Ethereum, but it comes to show how a lot of people don't care that much if a certain project is decentralization or not as long as they can make their bets on certain tokens.

Ethereum high gas prices has been a catalyst for the current BSC hype. Binance was smart to create a mirror chain with cheaper fees and faster transactions while using $BNB as the base currency. So it's not so surprising to see bnb at the price it is now considering everyone currently farming or swapping these tokens on pancakeswap, bakerswap or other defi protocols on bsc requires bnb to pay for fees.

It's worth noting that a large part of bnb tokens gets locked from time to time to either farm on binance launchpool or commit to binance launchpad projects not to mention Binance burns a decent amount of BNB tokens every quarter.

[Renampun]

amazing, I never thought BNB would be able to be in 3rd place...
The high fee of ERC20 makes many developers try their luck in BSC. low fees and fast trx processing. BnB will be long in position 3.

OOT  *btw, what happened to eth 2.0 is there any further news about the launch schedule?

[BITCOIN4X]

I still agree that BNB tremendous rise is due to ethereum merchant migration. Ethereum transaction fees are the main cause of BNB pump. But will this last long ?

I do not trade but the rerecnt growth of BNB do gives me some regrets LOL

Not only you, many people have come only to regret missing the BNB train this time. LOL

[In the silence]

Looking at the bnb marketcap, it eats other coins marketcap from february 18th to 19th and never lowered. This means that many users are not in the pump but clearly for the fees it offers.

Binance is centralized but people dont care, just like mk4 said.

[XZERO1]

And all of that is obviously because Ethereum is performing poorly in fees per transaction department when its network is quite busy.

Even if I want to send $2-3k worth of tokens I would feel really uncomfortable about paying $100-$200 for a single transaction while trading on Uniswap for instance, add to that you have to pay for approval of that token first to be able to trade it, now think if you want to sell something on your wallet that is worth around $100 on uniswap, you're money is pretty much stuck there until Ethereum 2.0 comes out and maybe solve this fee issue.

BNB is way more centralized than Ethereum so it's not like it's an ideal option for many people that are into decentralization, it just doesn't make sense paying that much money to have a more decentralized trading experience.

One good thing about the fact that many traders are moving to Binance Smart Chain would be that Ethereum network traffic will eventually drop significantly and many people that have tokens on their ETH wallet stuck because of fees can finally trade them after months of constant high fees.

[crzy]

Believe it or not, every altcoins wants to overtake Bitcoin on top, they are doing everything to make it happen. BNB are slowly getting there, they prove that they are not just a normal exchange and their coin is something big. If the CEO of BNB have that strong mindset and goals, I’m sure they can achieve many heights along their way.

[Viscore]

Believe it or not, every altcoins wants to overtake Bitcoin on top, they are doing everything to make it happen. BNB are slowly getting there, they prove that they are not just a normal exchange and their coin is something big. If the CEO of BNB have that strong mindset and goals, I’m sure they can achieve many heights along their way.

That was crazy if we think like that because even though Bitcoin losses its value and dumps to $1, Bitcoin is still Bitcoin.
*Bitcoin
*Ethereum
*BNB

I expect this to happen, XRP is now facing a huge problem while BNB keeps soaring high as most investors are diversifying their investment with this coin. And another reason is the huge fees now. Well, I appreciate how the developers run this, and they are having a good marketing strategy which gives a huge help for this to happen.

[palle11]

Binance is centralized but people dont care, just like mk4 said.

That is because the team is very active. Investors will always research on the team behind a project. Reading the binance CEO, I never thought he had this big plan for his exchange in trying to bring bnb at close or more than bitcoin. His statement is also capable to get more bull for bnb. I think he is even quiet for this time, because if he had been using the Twitter to hype bnb, the coin will zoom more. Elon musk tweets was what gave doge the hype of the moment.

[sujonali1819]

This recent price spike helps bnb to became a large 3 coins in the crypto world right now. This really amazing and people are rekt who did not get it before. The reason to me are

1. Binance is the large crypto Exchange in the world and bnb is a coin which is own by this binance. So psychologically investor believe this will have a big chance to be big one.

2. After bitcoin people basically use ethereum/tokens, but the fee on eth blockchain is too high. So people are going to BSC blockchain for lower fees.

Btw I have a question in this case. I heard somewhere CMC is calculating/showing incorrect circulating supply and market cap for BNB, is it right? Actually how much the circulating supply of bnb now?

[repear7]

Yes,
Traders are giving priority on BSC. So, Project started to choose BSC for launch their cryptocurrency. I think it’s a big reason for pumping bsc.I think demand of BNB increasing for it.

[noormcs5]

The pretty obvious reason in my opinion: Ethereum's fees have been quite high for a while, and Binance Smart Chain(BSC)'s fees are drastically lower. And yes, BSC is like magnitudes more centralized than Ethereum, but it comes to show how a lot of people don't care that much if a certain project is decentralization or not as long as they can make their bets on certain tokens.

The BNB coins has grown exponentially and i hope it can maintain this growth and do not dump as quickly as pumped. Since the BSC is getting attention, does it means that the projects on BSC like Pancakeswap (CAKE) , Sparta, Bake etc will also get big returns ? Those who missed the gains in bnb , can invest in these projects for good profit.

[JooBra]

The pretty obvious reason in my opinion: Ethereum's fees have been quite high for a while, and Binance Smart Chain(BSC)'s fees are drastically lower. And yes, BSC is like magnitudes more centralized than Ethereum, but it comes to show how a lot of people don't care that much if a certain project is decentralization or not as long as they can make their bets on certain tokens.

The BNB coins has grown exponentially and i hope it can maintain this growth and do not dump as quickly as pumped. Since the BSC is getting attention, does it means that the projects on BSC like Pancakeswap (CAKE) , Sparta, Bake etc will also get big returns ? Those who missed the gains in bnb , can invest in these projects for good profit.

Binance is the first who is using the eth problems with fees in their advantages. And it's paying off big for them. I hope they can keep the website and app working smooth without slowing down with this many new people coming in.

[cheezcarls]

And it seems that scam DeFi projects are now turning their attention to BSC because of ETH's ridiculously high and uncontrollable gas fees. Now I wonder Binance Coin has overtaken Tether in market capitalization and it pumped to more than $300+ before pulling back a bit. As long ETH doesn't step up to the plate and not launching it's 2.0 soon, they can lose steam and momentum as projects will start looking into BSC and other blockchains that has very low fees.

[judaspriest]

Yeah! Binance became one of the outstanding altcoins at the beginning of this year, BNB's increase of more than 3x, because Binance smart chain had a positive impact on Binance, making BNB prices also undergo a strong bullish trend, especially with ethereum users who are frustrated with the increase in gwei also making this thing positive for binance and made ethereum users go to the Binance smart chain, because of its cheap fee, congrats holders binance!

[OcTradism]

Your title is not correct. It is Binance coin with a ticker is BNB.

Coinmarketcap ranks it in the third position and you can check the name: https://coinmarketcap.com/currencies/binance-coin/
With the successful growth of Binance Smart Chain, Binance coin will grow more. Users on Binance also have to hold Binnace coin to upgrade their accounts and enjoy lower trading fees. They have to hold 50 BNB to upgrade their accounts to VIP 1 and more BNB to upgrade it to higher level.

https://www.binance.com/en/fee/schedule

[mk4]

The BNB coins has grown exponentially and i hope it can maintain this growth and do not dump as quickly as pumped. Since the BSC is getting attention, does it means that the projects on BSC like Pancakeswap (CAKE) , Sparta, Bake etc will also get big returns ? Those who missed the gains in bnb , can invest in these projects for good profit.

I mean, Pancakeswap(CAKE) already had a 150% increase in a single week, and a huge 2000% increase in a month. So.. mostly yes? Not sure how this is a good idea for people who missed the BNB train though; especially for such projects that are significantly more centralized (as if Ethereum itself wasn't centralized enough).