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Most of the digital assets in the market tend to follow a similar path. This path is determined by Bitcoin (BTC) the largest and most popular cryptocurrency. For short periods of time, there are a few virtual currencies that tend to deviate from this trend. However, this is something that cannot be sustained for a long period of time. This time, Binance Coin (BNB) seems to be the exception to the rule.
Binance Coin Follows its Own Path
Binance is the largest digital currency exchange in terms of trading volume. Launched in 2017, the platform was able to gather the attention of thousands of crypto investors from all over the world. One of the main characteristics that this exchange has is that it provides users with the possibility to reduce their trading fees by purchasing Binance Coin.
The BNB coin is a digital asset that can be characterized for having smoother price swings since it was released to the market. Although its price fluctuated it didn’t do so in the same way as other digital assets.
Since the beginning of the year, Binance Coin has experienced an increase in its trading volume. This behaviour seems to have a correlation with its price that moved from under $5 at the end of December 2018 and it surpassed $15 a few hours ago. In the last 7 days, BNB grew a surprising 50% according to CoinMarketCap. This is the largest weekly price increase among the top 50 digital currencies.
Just to put that into comparison, Bitcoin grew during the same period of time 1.55%. Ethereum (ETH), the second largest crypto, experienced a price increase of 0.76%. Meanwhile, XRP grew 0.59%.
There is only one currency among the top 10 that has experienced strong growth in the last days. We are talking about Litecoin (LTC), that is currently the fourth most valuable virtual currency. It grew in 7 days almost 25%. Far from the 50% growth registered by BNB.
Since the beginning of the current year, Bitcoin grew less than 1.8%. When Binance Coin more than doubled its price since January.
The crypto exchange Binance has decided to burn BNB coins each quarter. The company uses 20% of its quarterly profits to buy BNB coins in the market and burn them. In order to do so, Binance sends them to an address that they are not able to access, reducing the total supply of the coin.
It will be interesting to see how this virtual currency will evolve and if it will be able to keep its own path, rather than following Bitcoin’s trend.