Amid another minor cryptocurrency rally there is again one clear standout – Binance token (BNB).
Binance has now surpassed Stellar (XLM) and TRON (TRX) to be ranked at number eight on Coinmarketcap and is continuing to surge forward with incredible momentum.
At one stage, the Binance token jumped 20 per cent in just 24 hours, as the other major cryptocurrencies faltered. At the time of publication, the price is sitting at more than US$14.
Observers are yet to identify one specific reason for the increasing value, but it is possibly linked to the recent ‘Binance DEX bounty campaign launch’.
As well as that, Changpeng Zhao (CZ) made a confident statement in his live AMA (ask me anything) on March 5, claiming Binance token has more use-cases than any other cryptocurrency in the market.
— Binance (@binance) March 6, 2019
According to eToro Senior Analyst Mati Greenspan says the increase shows people have confidence in the growth of the industry.
“Binance coin has been able to buck the crypto correlations principally because people buy it as a way of speculating on industry growth,” Mr Greenspan said.
“If the markets are moving, it means people are trading, and Binance has a big share of those volumes.”
Prominent Australian cryptocurrency observer Alex Saunders recently said he believes the Binance price could increase 10 fold within a few years.
“Binance has become crucial to the whole ecosystem,” Mr Saunders said.
“With security tokens, decentralised exchanges, and launchpad for new projects all likely to incorporate BNB, I think a 10x increase is definitely on the cards.”
Alex recently posted his opinion on the BNB token fundamentals in his private crypto community. Since the post, BNB has rocketed upwards of 120% in value.
However, others remain skeptical, pointing out Binance’s success will depend on whether cryptocurrencies can ultimately achieve mainstream adoption and the last two years have shown there is still a long way to go.
DISCLAIMER: This article is not intended as investment advice. The cryptocurrency market is uncertain and extremely volatile.