Binance Coin (BNB) Rampages Again, Gains Staggering 287% in 2019

By CCN.com: Binance Coin (BNB) is the best performing crypto asset in the global market with the exception of cryptocurrencies that launched in 2019.

According to OnChainFX, BNB was the only crypto asset to achieve an all-time high this year since 2017 and it is down about 9 percent from its record high.

Binance Coin (BNB) Rampages Again, Gains Staggering 287% in 2019 1

Binance coin is down only 9 percent from its all-time high. | Source: coinmarketcap.com

In contrast, bitcoin, which has performed relatively well throughout the past year, is down about 73 percent from its all-time high. Most ERC20 tokens in the market are down about 90 to 99 percent against the U.S. dollar.

Why Binance Coin (BNB) Appealed to Crypto Investors

Throughout the past year, especially in recent months, the Binance team has shown promising progress in the development of the Binance Chain mainnet and Binance Decentralized Exchange (DEX).

This month, the Binance Chain mainnet was released and several projects in the likes of Mithril already migrated to Binance Chain from Ethereum.

By the time a swap was done for BNB to migrate from Ethereum to Binance Chain, it was the most valuable ERC20 token on the Ethereum blockchain network with a valuation of over $2 billion.

The high level of developer activity around Binance Chain and the profitability of Binance, which reportedly recorded a $71 million profit in the first quarter of 2019, likely appealed to investors in the crypto market.

When Binance Coin first launched, it gained popularity from the crypto exchange market because it was the first exchange-based coin with the model of buying back the supply of BNB through the profits generated by the exchange.

But, the crucial catalyst of the momentum of BNB was the development around Binance Chain and DEX that many investors perceive could be the future of the market.

As the market matures and fiat on-ramps become less popular as before, DEXes could see an increase in usage considering that the trend of the technology sector is also moving towards pro-privacy in recent months.

JP Vergne, an Ivey Business School professor, said in a study:

Besides, a new cryptocurrency may look more appealing than its older competitors at the time of introduction, but if it is not backed by a solid team of developers who continually improve its underlying software, over time it will be unable to maintain its initial technological advantage.

After all, every blockchain network is a piece of software and a protocol. Hence, high developer activity and a strong community are key for the long-term success of a blockchain-based project.

How Binance Could Sustain Growth

Binance Coin already achieved a new all-time high while the market is suffering from a 16-month bear market and the valuation of the crypto market is down nearly 80 percent from an all-time high.

A further increase in value from the current level of BNB is difficult to expect in the short-term because BNB is up already 287 percent year-to-date and has outperformed every cryptocurrency in the market.

But, if Binance Chain shows signs of evolving into a more decentralized and a distributed network for decentralized exchanges, and the open-source developer community in crypto takes the lead, it could act as a stimulus for the next wave of growth for Binance.

The first phase of BNB was the launch and beginning of the buyback program. The second phase was the launch of Binance Chain and Binance DEX. Similar to Ethereum in 2017, the third phase of Binance Chain is to prove the worth of its valuation and whether it can turn out to be a viable blockchain for DEXes like investors expect.

The DEX market, although it lacks competitors, is still quite tight with protocols like 0x and platforms such as Kyber Network and Airswap fighting for market share.



About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin55,322 0.81 % 1.53 % 5.37 %
Ethereum4,164.3 0.58 % 1.91 % 3.55 %
Binance Coin612.48 1.43 % 3.50 % 4.82 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana198.75 0.44 % 1.49 % 7.92 %
Cardano1.580 1.26 % 1.53 % 15.65 %
XRP0.9588 0.46 % 0.19 % 12.14 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

bitcoin
Bitcoin (BTC) $ 55,104.00
ethereum
Ethereum (ETH) $ 4,154.69
binance-coin
Binance Coin (BNB) $ 608.10
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 198.72
cardano
Cardano (ADA) $ 1.57
xrp
XRP (XRP) $ 0.957924
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 35.69
dogecoin
Dogecoin (DOGE) $ 0.207995