The crypto market has seen quite a lot of volatility in 2019, although not all of the price changes were bad, as they were in 2018. In fact, many coins saw significant growth. Bitcoin (BTC), for example, recently managed to breach one of its major resistance at $4,000. Many have predicted that breaching this roadblock will mark the next stage in Bitcoin’s growth, and potentially its return to higher levels.
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However, while most of the market has been seeing significant gains in the past several days, one coin still outperforms them all — Binance Coin (BNB).
So far, in 2019, Binance Coin has shown a strong will of its own, often seemingly being immune to the market trends. While the coin did see a significant loss in 2018, it spent most of 2019 in recovery, even while the last remnants of the crypto winter still tortured the rest of the market.
Back in the early days of January 2019, the coin’s price was barely above $5. Now, however, only a bit over two months later, BNB price is at $15.86, and still seeing growth. The coin never suddenly spiked, but instead, its growth was steady and stable. Whenever it approached new resistance level, BNB would slowly carve its way through it, turning it into support, and continuing on.
But, what is allowing it to break free from the market’s grip and do its own thing?
Why is Binance Coin doing better than others?
The first thing to note is that BNB is a native cryptocurrency of Binance ecosystem. This gives it strong support, as well as a more tangible use case than most other cryptos. In other words, investors and traders can actually use it to buy things. And yes, while this is possible with Bitcoin as well, most other coins simply do not have any practical use, and all that people can do with them is HODL or trade.
Of course, it is not likely that anyone will be able to use BNB for paying for goods and services — that is still a Bitcoin-dominated realm, even though BTC itself doesn’t have as many use cases as its supporters would like. Instead, BNB is used within Binance exchange only, but that does not diminish its usefulness.
BNB can be used for buying other coins, as it is paired with a massive number of coins. It can also be used on Binance Launchpad, for buying newly offered coins in token sales. Finally, using it on the exchange provides several benefits, such as trading fee discounts, which many traders find more than useful. All of this gives it value, and in addition, Binance also occasionally holds token burns, meaning that a certain amount of BNB gets destroyed, which further increases the value of remaining coins.
Binance’s strategy with this coin has been flawless so far and developing it was the best move the exchange ever made. Because of it, it sees a lot more traffic than any other exchange out there, while the coin continues to gain value, supporters, as well as use cases. It will even be the base on Binance’s own blockchain, once it gets officially launched, as well as on Binance DEX.
If all goes well — and there is no reason to think otherwise — the pattern will certainly continue, and BNB will soon enough become one of the largest and most popular coin on the market. Many would argue that it already managed to achieve this, considering the fact that the coin is pretty young and it already sits at the 7th spot on the list of top ten largest cryptos by market cap.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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