Binance’s native cryptocurrency, Binance Coin (BNB) has been on a tear as of late, posting gains of up to 22% as it entered the top 10 cryptos by market cap on Tuesday. BNB has now displaced the popular cryptocurrencies Cardano (ADA) and Bitcoin SV (BSV), who were previously ranked among the top 10.
— CryptosBatman (@CryptosBatman) February 6, 2019
Today, BNB is still going strong and has thus far established an intraday high on the Binance-to-Dollar rate (BNB/USD) reaching $8.47 after opening the day at $7.78. This recent pump is just a continuation of BNB’s ongoing rally, which started on January 31 with a low of $6.03, marking a weekly gain of over 40%.
Binance Coin (BNB) Has Strong Fundamentals
The Binance Coin (BNB) surge follows the events that took place on Binance Launchpad, a token launch platform for bringing new cryptocurrencies to market. On January 28, 2019, the Launchpad successfully completed the token sale of BitTorrent’s BTT token in under 15 minutes, netting the BitTorrent team $7 billion.
Binance’s BNB token was used along with TRX in the token sale to purchase BTT tokens at a set rate of 1 BTT = 0.00001824 BNB (using a BNB price of $6.58 USD). The BNB side of the sale resulted in 23.76 billion BTT being sold for BNB within 13 minutes and 25 seconds.
The BTT token sale on Binance Launchpad was a massive success and more than likely contributed to the recent rise in the price of BNB, as it shows that the token has real utility and is being used in substantial amounts.
Furthermore, BNB’s rise in price can also be attributed to the confirmed launch of yet another cryptocurrency project, dubbed Fetch.AI and set to use Binance’s Launchpad for their token sale. Fetch.AI is a project with an economic internet model powered by artificial intelligence, machine learning, and blockchain technology.
According to Binance’s weekly report, their launchpad will be hosting the Fetch.AI token sale on February 25, 2019.
— Binance (@binance) February 6, 2019
If the Binance Launchpad continues to host successful token sales, the demand for BNB tokens is expected to rise as eager buyers looking to get into ICOs will use BNB to participate.
This puts BNB in a similar situation to Ethereum (ETH), in that back in 2017 and 2018 ETH was widely used for ICOs, which helped the Ethereum’s price to skyrocket.
What do you think of Binance Coin BNB? Will it hold its position among the top 10 cryptos by market cap for long? Let us know what you think in the comment section below.