Yesterday, Binance Coin closed at around USD 200 per coin, and within another 24 hours the exchange token is already trading another USD 100 higher.
The rise in price and the corresponding FOMO have also resulted in the cryptocurrency token climbing into the top ten assets by market capitalization and making it to third place. Here’s why this is so important to Binance and its native token.
Binance Coin ranks third in the Crypto Top Ten
Binance Coin has had a record month so far. February still has around a third of that to go, and dollar for dollar is already the month’s biggest candle in the asset’s history.
Related reading | Binance Coin (BNB) sets record for largest monthly candle ever
The rally continues, bringing the price per BNB token to a high of over $ 300 per token. With the 154 million and some odd BNB tokens in circulation, this has resulted in a market cap of $ 48 billion, which is now nearly $ 15 billion ahead of the closest crypto asset – the stablecoin tether.
BNB outperforms Tether and several other coins | CoinMarketCap
Tether’s market capitalization is based solely on supply as the price is pegged to the dollar and does not fluctuate significantly. Tether has been number three for XRP for a while as it digs deeper and deeper into the list of top cryptocurrencies by market cap.
XRP was ranked third for years when it got there and only recently began its descent due to an ongoing SEC lawsuit against Ripple.
However, Binance Coin barely cracked the top ten before this month and is now right behind Ethereum and Bitcoin in terms of total capital.
What is behind the unprecedented comeback of the exchange token?
Why the token is doing so well is a sign of general demand for the entire crypto market. Bitcoin’s launch has helped push Altcoins back into an upward trend that is now making money back for investors.
blah | BNBUSDT on TradingView.com
The gossip about coins that make a small fortune is attracting more and more investors to altcoins. And there is no platform that has more to do with altcoins than Binance.
Binance was the place to be during the last big altcoin season when Binance Coin was also in high demand. The final monthly candle is the largest since then, suggesting a lightning bolt will hit the exchange and connect the token twice.
Related reading | An SEC ripple effect causes XRP to move the Crypto Top 10
And because the exchange is so active and relies heavily on the token to underpin its massive and ever-expanding ecosystem, Binance Coin is one of the most valuable cryptocurrency tokens out there. Only now does the market recognize this value and the price is catching up accordingly.
Featured image from deposit photos, charts from TradingView.com
