Binance coin (BNB) has made some major gains since yesterday, pushing up by over 10% in intra-day trading. This was mainly driven by the announcement that Binance was pairing Binance coin with Ripple (XRP). While this did not affect the price of ripple (XRP), BNB investors seem excited, and the volumes of BNB traded have surged. That’s an indicator that investors believe this pairing adds to the fundamental value of Binance coin, and could see its price increase even further. However, even without this announcement, the value of Binance coin has been growing steadily since February, despite the fact the crypto market has dropped significantly in that time. So why is this coin so stable despite clear weakness in the rest of the market?
Well, the primary reason why Binance coin (BNB) has been gaining is because it is the native currency for the largest exchange in the world. Binance has volumes of more than $2 billion a day. It is also one of the most secure exchanges in the world. Naturally, its native currency is bound to have good value in the market. People have lots of trust in the Binance exchange, and as its popularity grows, so will the value of the coin associated with it.
It, therefore, follows that the value of Binance coin has nothing to do with the behavior of the rest of the market. While the rest of the market is largely driven by the value of bitcoin, Binance coin is backed by the credibility of the Binance exchange, which seems to be growing by the day. For instance, the recent introduction of True USD has pushed up the number of people creating accounts with Binance, further driving up the value of BNB.
Another factor that is pushing up BNB and will continue to push it upwards is the fact its coin supply will decline over time. Binance does a coin burn every quarter, cutting on the supply. With the strong demand that this coin has at the moment, investors know that a declining supply is great for its long-term value growth. This aspect of Binance coin has the capacity to push this coin to a high of over $100, if it continues at its current growth trajectory.
The bottom-line is that Binance coin (BNB) is the best coin to hold in times of crypto uncertainty. Anyone who has held onto Binance coin for the last few months has not been affected by the drop that has hit the market, a drop that saw Bitcoin drop to under $7000 at some point. If the crypto market continues in its current trajectory, Binance coin will continue to pump since more investors will look to it for safety and stability. It offers something that stable coins like USDT don’t offer, and that’s value growth.
If you are a low risk investor who favors steady growth over high-risk high return ventures, then you should consider investing in Binance coin (BNB).