A lot of bullish actions have been taking place in the crypto market in the past 24 hours. Binance BNB passed its all-time high again, breaking $600 per BNB, 90 billion dollar market capitalization. Outstanding, isn’t it?
Binance BNB has been killing it lately, and from what we are seeing, there is a high chance that it will be outperforming many altcoins this altcoin season.
With the price action we have been observing of late, most people wonder why the BNB coin has been rising, getting new all-time highs and the sorts.
Firstly, the CEO of Binance tweeted that you can trade stock tokens like Tesla on Binance with zero commission. Introducing tradable stock tokens on Binance, which represents fully backed shares of equity stock.
This introduction is incredible because it means that you can buy traditional stocks with cryptocurrency right now. Although it is not exactly the traditional stocks you usually buy, you can still invest in traditional financial markets with cryptocurrency. It is good because decentralized finance and cryptocurrency aim to eliminate those traditional financial institutions, so it is a step in the right direction.
This announcement is one reason Binance has been ahead of the herd and outperforming different altcoins. Asides from that, the fifteenth Binance coin burn is incoming.
Binance coin burn is when the token goes through a burning process every quarter in which Binance buys and destroys BNB worth 20% of the company’s quarterly profits.
Although, back in January 2021, the company moved to an accelerated burn rate which aims to reduce the time it will achieve its goal of burning 100 million BNB down to five to eight years.
However, they will not reveal any information on what percentage of the quarterly revenue the burn compromise is going forward with. Still, if BNB happens to burn 100 million tokens, that means that the burn will leave only 70 million tokens in circulation. If you are holding a Binance coin right now, you are lucky because this token can become very scarce in the future very fast.
The fourteenth burn was recorded as a record-breaking event where the leading cryptocurrency exchange burnt 3,619,000 tokens worth over 166 million USD.
It is crazy how fast they are burning their tokens, which also has a huge impact on the price increases of Binance.
Asides from that, people are aware of their quarterly burn, so they are trying to accumulate as much of the token as they can because it becomes very scarce and expensive. The accumulation is also a reason why the price of the token continues to rise.
Another reason is that Binance is a very good alternative for Ethereum because of its gas fee issue. Many Ethereum holders are trading with BNB and holding BNB. Some of them sell their ETH for BNB.
If you compare the BNB token to how it was when the year began, you will notice that it has outperformed other altcoins to a great extent.
