Binance Coin Spiked 75% in 1 Month While Crypto Market Snoozed; What’s Driving its Rally?
What’s really driving Binance Coin (BNB)’s rally over the past month? | Source: Shutterstock
Since January 14, the price of Binance Coin (BNB) has increased from $5.54 to $9.7, by more than 75 percent against the U.S. dollar. In the same time frame, the valuation of the crypto market dropped slightly by $3 billion from $124 billion to $121 billion.
BNB has outperformed the rest of the crypto market by a substantial margin and has become a top 10 cryptocurrency for the first time in its history after recording a 6 percent gain on the day.
The valulation of the Crypto Market is Down Since a Month Ago, Source: CoinMarketCap.com
What’s Pushing Binance Coin Up and What’s the State of the Crypto Market?
The primary contributing factors of the surge in the price of Binance Coin are fundamental factors such as a decreasing circulating supply, the multi-billion dollar business it represents, the performance of Binance in the bear market, and the prospect of a decentralized exchange.
On January 16, the Binance team burned $9.4 million worth of BNB in a coin burn, eliminating a portion of the circulating supply of the crypto asset.
Changpeng Zhao, the CEO of Binance, said:
“Burn complete. I remember when I did the first burn of $1,500,000 USD equivalent in BNB, I was nervous as hell. Now, well, I am still nervous, lol. Fastest way to spend money.”
The timing of the coin burn and the beginning of a short-term rally of BNB coincided. From January 16, following the successful elimination of 1,623,818 BNB,