Binance Coin (BNB), the native cryptocurrency of the leading crypto exchange in the world, is leading the crypto market resurgence after the meltdown that was experienced last year. Many virtual coins lost over 80% of their value as the crypto market bled. However, this year is proving to be a different story, and enthusiasm seems to be back within the market as almost all coins have seen significant gains just halfway through the year.
Binance Coin (BNB) seems to be in the lead after recording gains of over 550% since the start of the year. On May 26 the coin registered its highest price at $38.646 after a 116% rise in May alone. If you are wondering how impressive BNB has been then consider this, so far Bitcoin has recorded a 145% gain since the beginning of the year.
Binance Coin (BNB) To Keep Rising
Also, there is no other coin in the top ten that has managed to come close to the coin. The closest is Litecoin (LTC) which has recorded gains of 310% since January.
So, what has inspired the gains BNB is experiencing? Well, there are several reasons, chiefly, scarcity. Every quarter, the crypto exchange destroys 20% of the BNB it accumulates in fees. This will go on until there are only 100 million BNB coins left. As a result, the coin’s demand increases as the supply decreases, and this has a positive effect on its price.
Also, since the beginning of the year, the crypto exchange has been supporting promising projects through an IEO on the Binance launchpad. So far, the likes of BitTorrent, Fetch.Ai, Celer Network, and Matic have successfully managed to raise funds for their projects through this exercise.
The activity has been crucial in spurring the price of Binance Coin (BNB) as individuals interested in participating in various projects have to hold BNB for purchases. Given that the exchange plans to support at least one token project every month, we can expect to see the demand for BNB increase throughout the year.
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