Today, Binance Coin (BNB) managed to get the most votes in the poll published on the Crypto-Insiders premium chat group. BNB has developed a lot in recent years and has become a currency in its own right. We’ll go over recent developments and future expectations with you today!
What is BinanceCoin?
Binance Coin is a cryptocurrency created by the Binance exchange of the same name. Binance is the largest exchange in the world when we look at the volume they have on their platform every day. But today, Binance is not just an exchange, it has become a whole ecosystem in which Binance Coin has been given a major role. Today there is also a Binance Chain, a Binance Smart Chain, a Trust Wallet, and even a Binance Academy. Furthermore, Binance has also managed to establish several research projects.
Binance Coin is one of the most important parts of this. This currency can be used within this ecosystem. On the exchange, for example, a user gets a discount on transaction costs. On Binance Smart Chain, the coin can be used again to buy other coins.
Because the Binance ecosystem has become so big these days, it is of course also subject to various new developments.
A big change in the ecosystem has been announced in this message by Binance itself. This states that Binance Chain and Binance Smart Chain have now merged and will be called BNB Chain. They did this to clarify the link between the BNB token and the two Binance chains. With this update, they will also be targeting multiple sectors. In the post they indicate that they also want to pay attention to GameFi, SocialFi and the Metaverse.
Furthermore, Binance has set up BNB in such a way that they use 20% of their profits every three months to buy back the BNB token from the market and destroy these coins. This ensures that the total number of BNB is reduced over time. There were initially 200 million BNB tokens in circulation. Binance will continue the burning process until only 100 million tokens remain. There was also another fire in January. In this 18th edition of the token burn, a total of 1,684,387.11 BNB was burned. This can also have a direct impact on the price. When supply is low but demand is high, the price also goes up.
What else can we expect from BNB?
Binance recently launched a new payment provider called bifinity† With this, Binance wants to become a new fiat-to-crypto payment provider. This gives millions of users, merchants and entrepreneurs the opportunity to receive payments or pay in crypto. This is a big step towards Web3, according to Binance. Bifinity will also partner with Paysafe and Checkout.com. We entered this association to make it possible for even more people to buy crypto.
Bifinity also has the ambition to expand together with Paysafe in the future into Latin America, an area where Paysafe is the market leader. Additionally, Bifinity will also be adding Paysafe credit cards in the UK and Europe in the coming months. With this project they will also explore the world of non-fungible tokens (NFT). So there is still a lot to come for this project. These updates will only make the BNB ecosystem even bigger.
In addition, of course, we can also expect various new token burns. There are about 165 million tokens left at the time of writing. In the years to come, this number will only decrease until finally there are only 100 million coins left. This is very good for scarce assets. There will also be more collaborations between Binance and other platforms. These partnerships will only make the Binance ecosystem even stronger. It will be interesting to see what other collaborations they come up with.
The above developments may have an impact on the current BNB share price. However, to act accordingly, it is important to be really aware of the news. For this reason, we advise everyone to register in our private group for members. Here we will share the latest BNB news with you in the coming days so you can stay on top of the news and act on it.
Market sentiment and adoption
At the time of writing, there is approximately $12 billion in value locked on Binance Smart Chain (now BNB Chain). This means that there are approximately $12 billion worth of projects running on the BNB Chain. While this is a considerable amount, as you can see in the chart below, it is much less than it used to be. Back in the day, at the peak, there was a total value locked of around $32 billion.
At the moment, the three largest projects built on the BNB Chain are: PancakeSwap (CAKE), Venus (XVS) and Aplaca Finance (ALPACA). These projects are worth nearly $7 billion.
The peak of TVL in BNB corresponds to the peak in the chart below. This chart shows the search volume for BNB. In other words, this means how often BNB was searched for. May was therefore a very popular month for the coin. Unfortunately, this data has only decreased since then.
BNB is up 2% in the last 24 hours. In the last seven days, however, we have seen the price drop. During this period, the share price fell by around 5%. As of this writing, BNB is ranked fourth by market value. If we look at the BNB chart, we also see a not very positive picture. At the moment this is in line with the rest of the market. On many charts you see the same pattern over and over again. And that is a descending triangle pattern. This pattern is characterized by lower and lower funds, so investors are more willing to take profits, but funds hardly change, so investors are not willing to spend more on BNB. This is a bearish pattern in theory and often leads to a breakout at the bottom of the pattern. However, the price is still moving at the top of the pattern. Here we could potentially see a retest of the upper support line.
How do I determine the right time to buy?
Considering taking a BNB position but not sure when is the best time to do so? Ask an experienced analyst at our premium chat group† Here, multiple analysts daily share additional technical analysis that digs deeper into the price. Here you can easily get in touch with several experienced crypto analysts and trainers, they will be happy to help you make an informed decision.