Exploring the Latest in Binance Coin Price Movement: Analyst Points to Previous Surge as Indicator
In an intriguing development, the price of Binance Coin (BNB) has seen a significant increase of over 10% in just one week, reaching a new all-time high.
Written by:
Mete Demiralp
09.06.2024 – 20:52
Last Updated:
11 hours ago
0
BNB, a digital currency associated with Binance and its co-founder Changpeng Zhao, who is currently incarcerated, reached its peak in the initial days following Zhao’s four-month prison sentence in the United States.
This surge highlights Zhao’s status as the wealthiest individual in a US federal penitentiary. Zhao began serving his sentence at a California prison on Tuesday for his role in failing to adequately safeguard the world’s largest cryptocurrency exchange from money laundering activities.
According to data from CoinGecko, the price of BNB soared to $717.48 on Thursday, pushing its market capitalization to $109 billion. The value of the token has more than doubled since the start of the year.
The trajectory of BNB also mirrors the fortunes of Binance itself. The total assets held on the exchange have increased from approximately $80 billion at the beginning of January to $125 billion currently, solidifying its dominance despite a tumultuous period last year that culminated in the company paying a record $4.3 billion fine to settle a dispute with US authorities.
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BNB holders benefit from discounted trading fees on Binance, and the token is utilized to cover fees on the BNB Smart Chain, a popular blockchain among various crypto applications such as games and exchanges.
Dessislava Aubert, an analyst at Kaiko, noted that the recent surge in BNB was foreshadowed by trading patterns in the derivatives market towards the end of May. Starting in June, there was a noticeable increase in spot demand, with purchases consistently outweighing sales from June 2-5.
Aubert mentioned that BNB is traded on numerous centralized exchanges, which sets it apart from other exchange tokens that are primarily traded on affiliated platforms. He also highlighted that Binance still commands 85% of the global BNB trading volume.
*This content is not financial advice.
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