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Binance Coin sets a new ATH, hits $60

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Source: Google Images

Binance Coin hit the $60 price level and set a historic milestone as the exchange token records a near 70% increase over the past year. The market was strongly bullish and BNB was no exception as it followed in the wake of the gains posted by the leaders of the crypto rally, Bitcoin and Ethereum.

Source: BNB/USD, TradingView

The gains of BNB reflect positively on the crypto exchange, Binance. The exchange is one of the largest in the world and recorded its highest daily trading volume of $80 billion. It has over 900 trading pairs, making it the largest exchange in the world with both huge trading volume as well as a large variety of trading pairs offered. However around 24-hours ago the exchange faced an outage as activity surged.

The use cases for Binance Coin are numerous, with the more prominent ones being paying for transaction fees on the Binance exchange, and fueling transactions on the Binance Chain. This is accompanied by a quarterly burn of BNB, to reduce the number of tokens in circulation and increase the value of each BNB token. The past quarterly burn for October to December 2020 saw 3.619 million tokens being burnt, equivalent to nearly $218 million.

Binance has a $100 million accelerator fund whose purpose is to “empower emerging projects and drive collaboration between centralized finance (CeFi) and decentralized finance (DeFi)”. The selected beneficiaries who pass security audits will benefit from the resources offered by the Binance ecosystem, including access to customers, financial incubation, knowledge education, and other support.

The growth of DeFi has been explosive in recent months, and as the infrastructure around the ecosystem matures, its collective value is also likely to increase. This also gives BNB a wider circle of potential buyers who can benefit from its use cases.

Taken together with these developments and use-cases, BNB achieving the $60 is likely only a stepping stone to climbing further on the charts in the coming weeks and months.

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Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.