Bitcoin
BTC$42 794.09

-0.61%

Ethereum
ETH$3 270.05

-1.47%

Binance Coin
BNB$485.08

-1.40%

Tether
USDT$1.000406

0.01%

Cardano
ADA$1.46

8.57%

USD Coin
USDC$0.999654

-0.07%

The Prospects of Binance and BNB


11 Mar 2019

#Binance Coin

Given the fact that Binance Coin (BNB) is currently having an unprecedented bullish rally: the price of this cryptocurrency increased by as much as 47.5% over the last seven days, it seems that Binance is on everyone’s lips now. An enormous price surge is not the only thing that’s going on in the Binance ecosystem at the moment: the developers of this platform are launching their own blockchain, decentralized exchange (DEX); they have also introduced a new token launch platform (Binance Launchpad), a fiat to cryptocurrency exchange that is based in Liechtenstein, and they have opened a new office in Malta, the self-proclaimed blockchain island.

Zhao’s ambitious plans


All these events occurred in the course of last year alone, accompanied by the ceaseless promotional activities carried out by ChangPeng Zhao, a Chinese-Canadian digital entrepreneur and the founder of Binance, who has been preaching vehemently about his intention to scale up the entire ecosystem.

The actual cost-effectiveness of these novel solutions and the associated marketing campaigns is rather questionable, but they are certainly backed by sound judgment and logic. 

Binance runs a token with a solid market capitalization (as of now, BNB’s market cap is at $264.24 million) which is backed by nothing more than the desire of people involved in the Binance ecosystem to save money on exchange commissions.

Just a quick reminder, the holders of BNB, who trade cryptocurrencies on Binance exchange, get 25% discount of trading fees if they opt to pay with the native token. Before the Crypto Winter, which caused the trade volumes to spiral downward, BNB was something like a nice adjacent to the platform. But the current realities have turned Binance Coin into a valuable asset, the capitalization of which must be maintained, since it is, to a large extent, the only thing that still keeps traders on the Binance platform. That’s why the developers decided to invigorate their cryptocurrency in quite a smart way - by creating a decentralized Binance exchange which doesn’t store funds while allowing users to trade in such pairs as BNB/BTC, ETH and others directly from their digital wallets. In order to implement this idea into practice, Binance has to develop their own blockchain.

What is known about Binance’s decentralized exchange


According to the preliminary data, the expected block time would be only 1 second, which translates into literally instant confirmation and execution of transactions due to the fact that the transaction within such blockchain is deemed as confirmed as soon as it is included in the block. The similar technology allowed EOS to create a vast ecosystem of decentralized exchanges, such as Dexeos, Aeron, Newdex, in a relatively short period of time. After becoming a centerpiece of the renewed ecosystem, BNB would fall within the category of the ‘fast’ cryptocurrencies. However, the transactions that don’t involve Binance Coin would be carried out at a much slower speed. Basically, this difference in transaction processing rate should serve as an incentive for users to buy the excessive amounts of BNB which accumulated since the beginning of the Winter.

In a nutshell, the logic behind Binance’s strive to reinforce their standing on the crypto market appears to be the following:

So far, this scheme has proven its working efficiency since BNB has constantly been in the ‘green’ for the last few months. However, it may have happened in no small way due to Zhao’s promotional efforts, but once Binance obtains a fully operating model with the new DEX, they may elaborate further use cases for BNB and take this cryptocurrency to the Top 3 on Coinmarketcap, though it already occupies the 7th spot, which shows its immense progress.   


Related

How will regulatory troubles and mandatory KYC impact Binance Coin (BNB) price?
How will regulatory troubles and mandatory KYC impact Binance Coin (BNB) price?
Binance burns $390M worth of BNB tokens
Binance burns $390M worth of BNB tokens
Binance Allows Users to Trade Tokenized Stock Tokens Starting With Tesla
Binance Allows Users to Trade Tokenized Stock Tokens Starting With Tesla
Binance Coin (BNB) market cap passes Santander and UBS
Binance Coin (BNB) market cap passes Santander and UBS
Exchange tokens rally ahead of next week’s long-awaited Coinbase IPO
Exchange tokens rally ahead of next week’s long-awaited Coinbase IPO
Binance Visa cards are now shipping to European customers
Binance Visa cards are now shipping to European customers
Binance CEO Reveals the Truth: How CZ Saved Everything
Binance CEO Reveals the Truth: How CZ Saved Everything
Binance Coin frees itself from Bitcoin's influence
Binance Coin frees itself from Bitcoin's influence

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 69.2% 55 $42 794.09 -0.61% 1.43% $810 168 049 693 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 65.2% 68 $3 270.05 -1.47% 2.93% $389 763 601 939 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 72.8% 52 $485.08 -1.40% 9.01% $80 911 761 325 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 93.2% 1 $1.000406 0.01% 0.01% $78 431 375 548 USDT 7 days price change
5 Cardano (ADA) ADA Cardano predictions 71.6% 52 $1.46 8.57% 24.35% $48 920 187 300 ADA 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 94% 1 $0.999654 -0.07% -0.09% $45 456 614 172 USDC 7 days price change
7 Solana (SOL) SOL Solana predictions 65.2% 78 $143.22 -2.76% -0.04% $44 972 460 681 SOL 7 days price change
8 XRP (XRP) XRP XRP predictions 69.6% 58 $0.764648 -1.88% 0.84% $36 445 510 124 XRP 7 days price change
9 Terra (LUNA) LUNA Terra predictions 70% 59 $83.60 -3.05% 13.67% $29 968 288 867 LUNA 7 days price change
10 Polkadot (DOT) DOT Polkadot predictions 73.2% 53 $26.59 -5.36% 5.67% $26 260 689 376 DOT 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 76.4% 46 $0.170888 -5.89% 12.43% $22 671 856 797 DOGE 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 66.4% 76 $89.66 -2.78% -0.85% $21 908 936 318 AVAX 7 days price change
13 Polygon (MATIC) MATIC Polygon predictions 73.2% 54 $2.40 3.16% 11.78% $17 532 637 165 MATIC 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 70.4% 59 $0.000030 -3.27% 2.93% $16 208 505 542 SHIB 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $0.998891 -0.18% -0.13% $14 431 175 560 BUSD 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.