Why Binance Coin (BNB) Registered New All-Time High

Binance Coin has broken the $700 mark for the first time in its history. BNB’s new all-time high has to do with the successful concept behind the cryptocurrency.

Binance Coin (BNB) has been around for about seven years and during this time has become the third most important global cryptocurrency behind Bitcoin (BTC) and Ethereum (ETH)

Yesterday, June 5th, Binance Coin’s price curve recorded a new all-time high of around 710 US dollars, replacing the previous one of around 690 US dollars from 2021. BNB’s current market capitalization of 107 billion US dollars is also record-breaking. What is behind the success of Binance Coin?

1. BNB was initially designed by the crypto exchange Binance as a discount token, which was an innovation in its early years that has since been copied by other crypto exchanges. Binance customers can still pay fees with BNB and then receive a discount of up to 25 percent. This meant that Binance Coin had and still has its first useful and valuable use case.
2. BNB has a four-year burn program in which Binance Coin is destroyed on a large scale. By deliberately destroying BNB, Binance supports deflation, which is intended to support the price curve. Of the 200 million Binance Coins initially generated, only 147 million currently exist and the number will be further reduced to 100 million over the coming years.
3. Binance Coin is basically the ticket to several attractive offers from the crypto exchange, the first of which are Binance Launchpool and Launchpad. When Binance introduces new cryptocurrencies through these programs and often distributes them for free before their stock market debut, you need BNB to be able to participate. Most recently, a Binance Launchpool campaign, for example, exclusively featured Notcoin (NOT) and the new cryptocurrency has since delighted investors with more than 100 percent gains in three weeks.
4. BNB is the base currency for decentralized finance in the Binance Smart Chain (BSC) ecosystem, can be staked for interest, can be used as collateral for crypto loans and can also be used as a means of payment in the real world via Binance Pay. The list of uses for BNB has grown steadily over the years and gives Binance Coin a right to exist that hardly anyone doubts anymore.

Conclusion: Binance Coin – short-lived high or sustainable momentum?

Bitcoin (BTC), the leading crypto currency, set a new all-time high of around 73,000 US dollars in March and is currently trading just below that. The market environment is therefore positive for established altcoins such as BNB. Binance is by far the largest crypto exchange in the world and anyone who uses it with its numerous attractive offers will hardly be able to ignore BNB anyway. There is therefore a lot to suggest that Binance Coin has not yet reached its full potential.

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