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BNB Kicks IOTA Out of the Way, Taking Spot #12, Investors Inspired by Binance’s CZ and His Plans to Conquer DLT Field

  • Yuri Molchan
    📰 News

    A short while ago, BNB claimed position #12 on CMC with an increased market cap value, making IOTA retreat to place #13


BNB Kicks IOTA Out of the Way, Taking Spot #12, Investors Inspired by Binance’s CZ and His Plans to Conquer DLT Field
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Contents

It’s been a few days since BNB and IOTA swapped places on the Coinmarketcap scale. At around midday GMT on Friday, the Binance Coin had the biggest market cap value since November – slightly over $856 mln, whereas IOTA’s market cap totalled around $807 mln.

At the time of writing, BNB’s market cap and that of IOTA have risen, but still Binance Coin remains ahead of MIOTA.

BNB and IOTA’s market caps started going different ways after January started – BNB went upwards, IOTA – downwards.


BNB Rises in Market Cap Based on Binance’s Plans to Launch Mainnet for ICOs

The swap took place sometime during January 21.

What pushed bulls forward

Last week, Binance launched an exchange for Europe and the UK – Binance Jersey. Back then, Binance stated that this move would allow European and UK customers to trade BTC and ETH against fiat currencies: the Euro and GBP.

But an even bigger effect was made when the Binance CFO, Wei Zhuo, claimed that due to Brexit, investors in the UK would go for crypto as Britain goes away from Europe. Zhuo believes that the expansion of Binance will provide EU citizens with new opportunities to invest, especially now that Brexit may bring economic uncertainty both to the UK and EU.

Bulls seem to consider the expansion as a chance for potential growth, given that when Binance or any exchange is rolling out to a new territory, the chances of getting more revenue are high. Thus, investors are starting to buy BNB, although it never meant to be a financial tool, just a utility coin.

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Plans to conquer the blockchain space

Aside from that, investors are impressed by Binance’s plans in the DLT sector this year.

U.Today earlier reported that Binance was planning to launch its own mainnet dubbed Binance Chain. CZ claims that the new business direction for the company will be making ICOs and helping startups issue their own Binance-based tokens.

Another bullish point is that Binance traders are expecting the exchange to launch a dex this year, a demo of which was released in late 2018.

One more reason for BNB’s rise is that CZ earlier announced his plans to diminish the BNB circulating supply by making token burns. The intention is to burn the 100 mln coins which Binance sold during their ICO. Apparently, investors follow the simple economic rule that the fewer the supply of a product, the more expensive it gets.

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It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst


It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst
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The fact that Bitcoin saw its price breaking above $5,000 at the beginning of April made everyone highly optimistic about the prospects of a full-fledged bull run. However, crypto bulls shouldn’t hold their breath since it could take decades for the number one currency to recover from its epic downfall.

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Bitcoin compared to other bubbles  

After comparing Bitcoin to other bubbles, UBS analyst Kevin Dennean came to a conclusion that BTC will most likely follow their lead, Business Insider reports.
However, here’s a catch – Bitcoin will have to undergo a long-lasting recovery, so it is not reasonable to expect another bull run in the nearest future. For comparison, it took the Dow Jones Industrials 22 years to reach its previous peak.   


‘We're struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are,’ Dennean claims.

Bitcoin compared to other bubbles  

Picture: ©FactSet

With that being said, it is still not guaranteed that a certain bubble retests its ATH even after decades since a big burst. Nikkei, despite reaching its 20-year highs in October 2017, was still 50 percent lower than its ATH that was recorded in 1989.

Nikkei

Picture: ©ATLAS

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When you lose, you win

During the peak of the crypto market, Bitcoin was frequently compared to the infamous tulip mania, but these two barely had anything in common (except for the horrible stability of value). Hence, it hardly makes sense to apply a certain pattern and expect Bitcoin to behave in a similar fashion to other bubbles.

Historically, enormous price crashes actually benefited Bitcoin. As reported by U.Today, Bitcoin trader recently noticed that the BTC price rise 5.1-16.89 times every 70+ percent plunge. Crypto bulls have every reason to expect a similar outcome this time around.

'Shadow of bull statue on texture tiles floor metaphor of bull market is coming for stock market or investment asset' image by 123rf.

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