Binance Coin (BNB) is now the third cryptocurrency with a market cap of $81.8M after the 17th quarterly burn. The coin is now atop of Cardano’s ADA, and it seems the rise in price will continue, too.
BNB is currently trading at $492 after a 20 day rising trend from $332, showing a 48% price jump. The latest burn stage for BNB has surely helped the coin move to the top of the list, but there are many other factors that help BNB become a bigger cryptocurrency in the market.
The Biggest Exchange Coin
BNB is currently the most valuable exchange coin with the biggest market cap. Although many experts criticize the decentralization of Binance Chain and Binance Smart Chain, the native token of these blockchains is on an uptrend journey. Quarterly burns are burning programs that periodically burn some of the reserved BNB tokens to keep the community engaged and protect the coin. The latest one has been parallel with a good price jump and increase in the market cap for BNB.
Binance burned 1,335,888 BNB tokens in the 17th quarterly burn of BNB. The value of burned tokens is about $639,462,868. Some of the burned coins (17,839 of them) were burned via the Pioneer Burn Program. That program is run by Binance for supporting those who mistakenly lose BNB or wrapped tokens on Binance Chain and Binance Smart Chain.
CZ and Team Binance published a blog post about the latest decisions and programs in Binance for the 17th burning program. One of the topics of the post is about the growth of category positions for Binance.
The post claims that the category position of Binance grew from 69.6% in June to 69.7% in July and 70.3% in August. But Binance says that the position is about 50% according to the internal researches. The post says about this position:
“This figure has some significant implications. First, we don’t view other exchanges as competitors. Why? Say we grow our category position from 70% to 80%: we only increase 10%, whereas if the industry grows 10x, we will likely grow by a few multiples. For this reason, we always focus on growing the industry.”
Other parts of the post talk about regulations and why Binance embraces them. After all, the burning program is just one of the factors that affect the position of Binance and its native coin, BNB. Using Binance Smart Chain and the products on it has been increasing in the past months because people are looking for alternatives to Ethereum, especially for DeFi use cases.
We can expect this growing journey to continue as more products and services are launching on this blockchain. All of them need BNB as the main token, and it increases the demand, thus the price of the token.
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