Altcoins News

Story: What is Binance Coin (BNB), and Why has it Gained More Than 1,000% Since January 2021?

By Sydney TheCMO

1 / 10

Binance Coin or BNB traded as low as $36 in January 2021 but its price has since then enjoyed impressive gains and is currently trading at $369.

2 / 10

Although it is up over 1,000% so far this year, it is currently discounted compared to its all-time high of $691.77 which it achieved in May before the recent market correction.

3 / 10

Many exchanges have a native cryptocurrency that is commonly used to lower transaction fees and sometimes facilitate liquidity on the native blockchain.

4 / 10

Why BNB has been growing at such a rapid pace

5 / 10

BNB’s growth is organic, which means it is not a pump and dump like many other cryptocurrencies out there.

6 / 10

The network demand means more growth for the network, which means more transaction fees that are conducted through BNB.

7 / 10

Binance traders can purchase BNB just so they can use it for transactions. Binance also allows liquidity staking through BNB, which means people can buy the native token and…

8 / 10

Oftentimes, a utility cryptocurrency may experience low demand when the price is too high to make sense, and sometimes it might be heavily sold off that traders find it…

9 / 10

Note that BNB is a pre-mined cryptocurrency which means there will not be any new tokens made in the future.

10 / 10

The company plans to continue running the BNB buyback program until the maximum supply of BNB reaches 100 million.

The Currency Analytics

Want the full story?