At the time of writing, BNB – the native token of the world’s leading exchange, Binance, has finally gained in price after a long period of consolidation.

Last month, the BNB fell as much as 59% due to a heavy sell-off in the crypto market. The third largest altcoin in the world is currently trading at around $ 397, up 28% in just one week. Again, it is important to note that the trading volume has increased by a staggering 42% within 24 hours.

Reason for price increase?

One report The in-depth article published by the Binance blog clearly summarizes the reasons behind the token’s recent success:

“The long-term vision for BNB is to be the native token on multiple blockchains with specific applications. BNB was never intended to replace Bitcoin or ETH. To be a true mass application, the NBB must be able to accommodate billions of transactions per day. In our current forms, we still have a long way to go. And we’re still trying all the time. “

According to a blog post, BNB has introduced the concept of “transaction mining”. Binance pioneered the periodic fee incineration, and the exchange team guarantees to destroy some of the tokens generated by the fees. The platform has developed into a “one-stop” solution for popular crypto services as well as for unique solutions such as Binance Education (Education), Binance Charity (Charity).

Accordingly, Binance developed the concept of an IEO, a token sale that takes place on the exchange instead of the project’s website.

In 2021, the price of BNB has increased 18 times in 4 months. The all-time high is $ 690. More recently, the company has even supported regions affected by the global pandemic in its philanthropic plan.

BNB’s social media volume also saw a + 24.5% increase, with a similar forecast for bullish sentiment in the room.

Social volume | Source: LunarCrush

Additionally, the upward trend mentioned above isn’t limited to on-chain indicators and price charts as many in the community think.

Davinci Jeremie tweets:

“I believe that Binance’s BNB coin will be bigger than Apple or Amazon because it is a security, a cryptocurrency and a smart chain.”

However, Binance CEO Changpeng Zhao was quick to respond to the above claim. The CEO disagrees with one aspect of the problem. He was tweets:

“No certainty, but the rest is correct. We’re moving forward, but we don’t need stocks. “

KYReality check

BNB’s market cap at the time of writing is $ 61 billion, an impressive figure in the crypto market. Unfortunately, this is still much lower than Apple and Amazon, which both have market caps of $ 2.09 trillion and $ 1.63 trillion, respectively.

One could argue that such claims are nothing more than pipe dreams, especially given the sheer inequality of market valuations.

Consider it…

Historically, digital currencies have taken less time to reach the top of market valuation than many existing traditional assets.

Specifically, it took Bitcoin only 12 years to reach a market capitalization of $ 1 trillion (i.e. before the correction). Amazon and Apple took longer. In a similar way, altcoins like ETH could soon reach these values.

CZ too share Similar opinion:

“The best performing crypto assets have outperformed all of the best traditional assets over the past decade. The same will be the case in the next decade. No financial advice. “

With the increasing adoption of BNB as well as the added influence of CZ and the success of other Binance projects like Binance Smart Chain, this asset could stand the chance to do the unthinkable.

In fact, a recent article predicted an increase in BNB to the $ 1,000 mark.

Minh Anh

According to Ambcrypto

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