Binance Coin or BNB is arguably one of the best performing cryptocurrencies in 2021 judging by its impressive rally in the first half of 2021 but its recent performance demonstrated that it is still one of the heavily demanded cryptocurrencies.

BNB is one of the numerous cryptocurrencies that offer a lot of utility to their native platforms and this might be one of the reasons why has grown by such a huge margin within a relatively short time. Its price action indicates a significant recovery from the FUD that prevailed towards the end of July, which led to it bottoming out at $254.52 during the month, before jumping on the market-wide bullish trend. It enjoyed 12 consecutive days of buying pressure which consequently sent the price back to levels it previously achieved in June.

Binance Coin is currently trading at $330.79 with barely any major price changes in the last 24 hours. However, it has so far recovered by 5.70% in the last 7 days. Its price performance currently reflects the overall market performance, which means that another period of price volatility in the crypto market will have a major impact on Binance’s price.

Source: Binance

BNB’s latest performance indicates low selling volume but it seems to be too low to cause a substantial price drop despite the price being in the overbought zone according to the RSI. This is possibly because most BNB holders use the coin for staking to enjoy the incentives that the Binance Smart Chain has to offer, such as network rewards and transaction fees among those staking BNB.

Should you buy BNB?

There are numerous factors to consider before deciding whether BNB is trading in a favorable price range. For example, it currently has a $55 billion market cap which is still lower than counterparts such as Ethereum and Bitcoin by a huge margin. One could argue that it has a lot of room for growth but that would depend on the level of utility delivered by the Binance Smart Chain. Fortunately, the platform continues to support the launch of new crypto projects which might deliver more utility.

Another major growth driver for BNB is Binance’s growth. The crypto market is still in its early stages considering that less than 100 million people own cryptocurrencies. However, those figures are expected to increase in the future and Binance is one of the companies that will benefit from more users. In other words, an increase of users on the Binance exchange will translate to more transaction fees and more growth for BNB especially if you factor in BNB token burns which will increase its scarcity over time.

So far BNB’s circulating supply is already equal to its maximum supply, meaning there is no concern about price dilution by vesting or tokens flooding the market. Instead, the cryptocurrency’s utility ensures that it maintains its attractiveness. Another appealing factor about BNB at its current price level is that it is significantly discounted considering that it is currently trading at a price point almost half its all-time high of $691.77. It will likely test those previous peaks in case of another major bull run, thus highlighting potential upsides. The possibility of more growth and the Binance Chain and Binance exchange makes BNB an appealing buy, especially at its current price point.