Rising price of Binance Coin makes it the third most valuable cryptocurrency

Key facts:

Binance Coin surpassed $ 300 and left Cardano, Polkadot, Tether, and XRP behind.

The increase in operations on the exchange is one of the possible causes of the increase in BNB.

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Binance Coin (BNB), the cryptocurrency of the eponymous exchange, surpassed its all-time high, both in dollars and in bitcoin (BTC). At the time of writing this article it is worth USD 328, equivalent to 0.0061 BTC.

The cryptoasset it ranks third by market capitalization. In its sudden bullish rally, it outperformed Ripple’s Cardano (ADA), Polkadot (DOT), Tether (USDT) and XRP. In the last 24 hours the increase was 60%.

Between the reasons that could be causing this price increase of the Binance coin is the increase in transactions on the Binance exchange; the migration of users and developers from DeFi (decentralized finance) to the Binance Smart Chain; and recent tweets and media exposure from the CEO of the exchange house, Changpeng Zhao.

The price of Binance Coin is at an all-time high, both in dollars and in bitcoin. Source: CoinMarketCap.

Increase in transactions within Binance

The growth of Binance, which is positioned as the centralized exchange with the highest volume of money moved in operations, may be one of the causes of the increased interest in the acquisition of BNB, which causes the increase in its price.

This is because users of the Binance exchange have benefits from owning BNB. One of them is that, if they choose to pay the commissions in that currency, they have a 25% discount on each transaction made.

Another benefit is to “convert small balances.” This refers to the remaining pennies from the buy and sell operations within Binance. Once every 24 hours, the user can activate this command and these pennies, which because they are a small amount cannot be used for new trades, are converted into BNB.

A third option offered by the exchange house is to participate in the BNB Vault. By depositing the BNB there, the platform offers interest for a variable return in that currency, which is paid every 24 hours. Also, it grants other tokens to the user.

Growth of the Binance Smart Chain

The Binance Smart Chain (BSC) is Binance’s own blockchain. BNB was initially an ERC-20 token (built on Ethereum), but later migrated to its own chain. The BSC uses BNB as its native token and is compatible with the Ethereum Virtual Machine (EVM) that allows it to execute smart contracts.

The increase in the use of the BSC can be explained by the high commissions in Ethereum, the blockchain on which most DeFi platforms are developed.

Binance’s education website explains: “Since BSC is EVM compliant, it was launched with support for Ethereum’s rich universe of tools and dApps. In theory, this makes it easier for developers to migrate their projects from Ethereum. For users, it means that applications like MetaMask can be easily configured to work with BSC.

There are more than 12 thousand tokens developed in the BSC. Many of them maintain parity in their price with cryptocurrencies and tokens of other networks. On the Binance blockchain there are tokenized versions of bitcoin, litecoin, ether, polkadot, DAI, and USDT, among others.

In addition, their own DeFi protocol tokens built specifically on the Binance Smart Chain were developed. PancakeSwap (CAKE) Beefy (BIFI) and Venus (XVS) can be mentioned among the best known.

Media exposure and tweets from Binance CEO

Binance founder and CEO Changpeng Zhao could be, in part, responsible for the rally in the last few hours. During a recent interview with Bloomberg, he talked about the Binance Smart Chain and the decentralized exchange (DEX), PancakeSwap, built on this network.

His statements also favored this platform which, at the time of writing this article, is positioned as the DEX with the highest volume of transactions. Uniswap, which historically leads this market, was relegated to second place.

PancakeSwap is the decentralized exchange with the highest volume of transactions in the last 24 hours. Source: Coingecko.

A series of post-interview tweets also appear to have triggered the FOMO of various investors.

“Today will be a day of many tweets, for good reason,” wrote Zhao hours ago. Please get into ‘bull mode’ with me. When it happens, it just happens all at once, “he added.

Later he wrote: “Uniswap should consider moving to BSC. It is not easy to run with weight on the ankles, follow the users.

Additionally, Changpeng Zhao retweeted various posts that favor the Binance exchange and developments around its ecosystem.