Binance Coin (BNB) Doubled in a Week and Entered the Top-3

Binance Coin (BNB) Doubled in a Week and Entered the Top-3

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Binance Coin’s (BNB) skyrocketing rise can’t be much of a surprise, especially for experts. Less than a week has passed since we predicted this rising.

BNB has been growing by tens of percent per day all week. Since the beginning of the year, the coin has grown almost 9 times, from $37.67 to over $330. And since the ICO in mid-2017, Binance’s native token has grown by 250,000%. CZ (Changpeng Zhao), the founder of the exchange kept his word. He had promised investors that BNB would enter the top three cryptocurrencies. This goal has been achieved and even more. BNB has surpassed the stablecoin Tether (USDT), which, strictly speaking, is not a cryptocurrency and is usually not considered in market analysis.

BNB’s incredible success has a fairly simple explanation. CZ implements the model of the Chinese economic miracle in the crypto industry. China has embraced Western technologies and implemented them using its competitive advantages. But CZ did even more. If China mostly avoided spending on R&D, then CZ examines the market and chooses the best way to develop his business. So far, he has not made a single big mistake. That is why his cryptocurrency entered TOP-3.

The ingredients for success are well known. But it is not enough to know the theory, one must be able to perform it into practice. Not everyone can do what CZ did. He launched his token when the community was still debating whether the crypto exchange should have its own coin. As it turned out later, of course, this must be done. This brought a direct benefit when ICOs went bankrupt and were replaced by IEOs – Initial exchange offering, the offer of crypto projects on exchange launchpads. CZ established strict investment rules for IEOs: those wishing to get a share in a startup were required to keep a certain amount of BNB on their accounts.

On the other hand, BNB is the native token of the Binance Chain blockchain, which was launched in 2019 as a public blockchain with the main goal of creating a decentralized exchange Binance DEX. Unlike a regular exchange, one doesn’t need to transfer funds to trade on a decentralized exchange. This was also in great demand due to the numerous cases of exchange hacks.

Finally, in parallel with the Binance Chain, the Binance Smart Chain (BSC) blockchain was launched on the Proof of Staked Authority consensus, PoSA. The impetus for the creation of this blockchain was the huge success of Decentralized Finances (DeFi), which were launched on the Ethereum blockchain with its smart contracts. BSC also offers to launch smart contracts and DeFi projects, it is compatible with the Ethereum Virtual Machine (EVM), but the transaction fees on this network are significantly lower. Gradually, BSC takes away from Ethereum the yield farming projects, which gave investors thousands of percent of the profit last year. This is what drove BNB’s rising.

Despite its great success, BNB still can continue its rise. In terms of capitalization, BNB differs from ETH by more than 4 times, and from BTC by almost 20 times. However, it is already clear that CZ will not stop, BNB will continue to grow, and the creator of Ethereum should not relax.