Why BNB Coin Price is Likely to Rise in the Medium Term – CoinCentral
Binance CEO Changpeng Zhao (CZ) announced the burning of about 600 million Binance Coins (BNB). This latest development is part of the company’s crypto-currency burning program. The quarterly event reduces the number of NBB coins in circulation, which reduces inflation and increases demand for the remaining coins. This strategy has led to higher prices in the past.
The company has already pledged to burn 100 million units. The currency has risen more than 1,200% since January, and it looks like it’s headed for even higher highs.
Factors contributing to the growth of the NBB
The Tesla Action Token
Binance recently launched its Tesla share trading service. For many, it’s a way for the crypto community to appreciate the momentum of CEO Elon Musk, who has invested more than $1 billion in the market through bitcoin so far. However, it also allows international users who do not have access to the US markets to trade stocks. Ultimately, the break-in of Tesla Stock will give traders greater exposure to Binance currencies such as Binance USD (BUSD) and BNB, which are regularly used by customers to reduce trading costs on the platform.
This additional benefit was mentioned at the launch of the Tesla token on the 12th. April demonstrated. After this event, Binance Coin rose by more than 25% in 24 hours and reached a high of $637.
CoinMarketCap data confirms demand growth. This represents an increase in BNB’s trading volume to a record $14 billion. The immediate price increase caused BNB to overtake XRP in terms of market capitalization and reach a valuation of about $92 billion.
CoinMarketCap data confirms growth in demand. (Photo credit: CoinMarketCap)
The Bitcoin Factor
Another factor that will eventually drive up BNB’s prices is Binance’s growing user base, which has grown significantly this year thanks to the meteoric rise of bitcoin.
According to SimilarWeb, financial traffic has grown from 39 million monthly visitors to 285 million in just six months. This represents an increase of over 700%. The additional traffic will allow Binance to expand its range of products and services. This is causing a snowball effect that will lead to an increase in demand for native platform components such as BNB.
Financial sector traffic has grown from 39 million monthly visitors to 285 million. (Photo credit: Similarweb)
An intelligent financial chain
Recently, blockchain has gained momentum, contributing to the growth of NBBs. It was launched in September 2020 and supports smart contracts and NBB coin betting.
The scalability of the device, as well as its low transaction cost, mean that it is now being used in moreFiFi projects. Recent implementations include Value DeFi, Harvest Finance and PancakeSwap, which have attracted millions of users to the system.
The BSC protocol confirms that BNB is a proof-of-concept crypto currency, which contributes to its popularity.
Binance has been promoting the use of the NBB token on its platform for some time. It currently encourages the use of tokens to pay for platform fees, particularly on BINANCE DEX, by offering a 25% discount. It has also placed itself in the Binance Earn program, which allows users of cryptocurrencies to earn passive income by betting on cryptocurrencies.
Finally, in addition to bitcoins, a Visa financial card can be loaded with NBB tokens. Customers can use the card for online purchases and regular bill payments. More than 35 million merchants worldwide accept BNB card payments and its use continues to grow.