Binance coin (BNB) went from $ 40 to almost $ 150 in just 9 days. How it happened?

The Binance coin token, labeled in the market as BNB, is jumping to impressive all-time highs, taking advantage of the great positivity that exists in the ecosystem in this new Bull run.

According to data from ProBit, at the time of this writing BNB is trading at $ 130.10, accumulating a great gain of 35.29% in the last 24 hours alone, and more than 152% in the last 7 days.

Without a doubt an impressive revaluation knowing how difficult it is to move a cryptocurrency of such size.

With this rise Binance reached a market capitalization of $ 19.75 billion, which led it to take the 7th place among the largest in the ecosystem.

But how did it happen? Here’s a review of what’s been going on.

Expanding Binance Ecosystem, With Deflationary BNB

Although we could be looking for a precise cause of the great high that we are seeing, at the moment there is no information that tells us that this was the case.

Rather, it is a rise thanks to a growing exchange, further fueled by the widespread rise of the crypto ecosystem.

BNB being the native token of Binance, we could consider it the heartbeat of the exchange. As the exchange grows, the token lags behind thanks to users who use it to take advantage of different benefits.

Various efforts have been made from Binance to further expand its playing field.

From the Binance Launch Pool to farming newly launched tokens, through Binance’s native DEX, products like Binance Pay, and all the way to the successful Binance Smart Chain are some of the reasons why the BNB token is getting so much traction.

But if that were not enough a growth adoption that drives the price, BNB also has another way to make this token a place to safeguard value.

I am talking about the burning of tokens, planned from time to time, and which is undoubtedly a fundamental key in its deflationary system. With currencies becoming unusable, and demand growing, it seems the result is clear, and today we confirm it.

The last BNB burn occurred on January 19. Despite the fact that there was no immediate price increase, due to the possibility that investors discounted it, now the effects are beginning to be felt.

Binance Smart Chain as the main source of gasoline

One of the biggest sources of demand for BNB today is the Binance Smart Chain.

This is because the token functions as the primary transportation vehicle within the Binance blockchain that supports smart contracts.

Yesterday with all the great euphoria in the Binance ecosystem, the volume on this chain reached an all-time high of more than 1.6 million transactions. An even higher figure in sight on Ethereum, which still ranks as the network with the highest value locked on DeFi.

This large increase is attributed to much lower fees for trading on the Binance Smart Chain compared to Ethereum.

A correction could come soon

Of course, prices do not move straight to the moon. And after a rise of such magnitude as the one we saw, a reversal is very likely to occur very soon.

Either way all trends are totally bullish. A drop at this point would be nothing more than healthy profit-taking, and seeking demand to push the price of BNB again.

Daily chart of the price of Binance coin (BNB). Source: ProBit.
Binance coin (BNB) price daily chart. Fountain: ProBit.

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Binance coin (BNB) went from $ 40 to almost $ 150 in just 9 days. How it happened?

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