Binance Coin (BNB) Soars Against Both BTC And ETH Pairs, Why The Rush To Buy?
Binance Coin (BNB) continues its price dash after it was announced that the cryptocurrency’s parent exchange was to double referral commission.
Today it’s once more in double digits, leading the market as its price surges to new highs.
On a day when most other coins stayed in the red, Binance announced that they will be increasing the bonus reward to 40% for all accounts that held 500 BNB or more.
And though that was meant to start on May 19, 2018, at 9 0:00 AM (UTC), the boom kicked off almost immediately. Binance has been rewarding users with a 20% commission, but this special offer has had a major impact.
For users who hold the required amounts of BNB would have their commission adjusted at 0:00 AM (UTC) every other day depending on the amount of BNB they hold. However, the BNB team also made investors aware that snapshots wouldn’t include holdings that are pending or in-order.
On the evidence of the quick spike, it appears BNB could rally to test the $20 price level if this uptrend momentum is sustained. On May 18, 2018, the coin opened trading at $12.36 against the US dollar and raced to a daily high of $16.22 before leveling off to close at $15.14.
Although it touched lows of $12.05, the outstanding run took its market capitalization to $1.4 billion after a total of $243,261,000 worth of BNB were traded. Even though the market cap didn’t change that much, it’s the daily trading volume that saw most of the action- jumping from $54m on May 17, 2018, to $243m.
Today the spike in value hasn’t relented and BNB prices have risen by +17% in the last 24 hours. At the time of writing, the coin is trading at $15.07 against the US dollar, moving a total of $281 million worth of the Binance token.
The token has also performed well against both BTC and ETH trading pairs, rallying to a price rise of +20% against each. BNB/BTC now trades at 0.00187514 while BNB/ETH is at 0.02232190.
Over the last 7 days, when most of the market is swimming in red, BNB is +21.69% higher than it was valued then. The coin is still in the green over 30 days at +31.72% and for investors who have been hodling for the last six months; the value has seen an impressive +828% growth.
With most of the coins still in red over the 7-day period, a slight ray of hope is beginning to form in the 24-hour window. This sense of bullish return could just be what the market wants, and BNB could seize upon it to attempt to reach its all-time high of $ 24.91 reached on January 12th, 2018.
It’s expected that huge daily trading volumes will continue to be witnessed, attesting to the popularity of this relatively new coin.
The price rally may also be helped by the fact that many believe the coin’s value will continue to appreciate with time as circulation reduces. Every quarter Binance has indicated that it will use 20% of the profits gained to repurchase and burn BNB.
It’s expected that this will continue until 100 million or 50% of all BNB are burned, thus increasing the value of each coin in circulation.
What BNB can achieve this quarter could really be down to what the huge support base thinks about the idea long-term and whether Binance can get the offer of 40% bonus going for a long time or withdraw it.
At the moment, Binance is one the biggest cryptocurrency exchanges around the world, topping that list when the ranking is based on daily volumes. To give clients an easy experience, the platform encourages the use of BNB when making transactions on the site.
The coins can be used to pay charges related to exchange fees, withdrawal fees, and listing fees.