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Three Possible Reasons for Binance Coin (BNB) Rally Over $660

Opinions
Mon, 05/03/2021 - 14:10
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Vladislav Sopov
Which catalysts are preventing Binance Coin's (BNB) bullish run from ending?
Three Possible Reasons for Binance Coin (BNB) Rally Over $660
Cover image via stock.adobe.com

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Binance Coin (BNB) is the top gainer today on Coinmarketcap's Top 10. With the BNB price over $665, the market capitalization of Binance's core asset exceeded $100 billion for the first time in its history. Here are some factors that explain its ballistic upsurge.

Binance (BNB) remains the top beneficiary of all crypto crazes

Binance Coin (BNB) added seven percent in 24 hours and expanded its rally over $665. This success can only be compared to Ethereum's (ETH) 6.8 percent overnight surge.

Binance coin (BNB) surges to $660
Image by Binance 

That said, the capitalization of this asset is more than $100 billion, which makes Binance (conventionally) the most expensive cryptocurrency service right now.

To some extent, this success reflects the increasing profits of Binance's main business, i.e., cryptocurrency exchange. While Binance (BNB) hosts BSC, the staking ecosystem, IEO launchpad and fees from exchanges remain the most important sources of income for CZ.

The more activity that cryptocurrency markets witness, the more revenue Binance (BNB) collects. The price of BNB correlates with net trading activity across all exchanges.

Also, Binance (BNB) users hold BNB to save on transactional fees. That is why direct purchases of BNB for transaction fees may be powerful catalysts for the BNB price rally.

Related
Microsoft, Apple, and MicroStrategy Stock Tokens to Be Listed on Binance

Binance never loses an opportunity to gain on this or that episode of crypto mania. Now, it listed tokens pegged to Microstrategy, Apple and Facebook shares. This step is incredibly risky in terms of regulatory pressure. Meanwile, it will bring new traders to the platform.

Binance (BNB) approaches massive NFT release

Also, Binance (BNB) dropped a bombshell by announcing its ambitions to launch its own digital marketplace for non-fungible tokens (NFTs).

As covered by U.Today previously, Binance's NFT framework will allow digital collectibles' owners to mint, store, trade and exchange their NFTs in a decentralized and seamless manner.

Related
BNB Prints New All-Time High of $641, Here’s Why

Many traders are considering the opportunity to see the BNB token involved in the new marketplace's tokenomics. This fact could result in a new BNB price boost.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)