What explains the BNB chain's rebound after the market crash? With a market capitalization of nearly $50 billion, BNB Chain (BNB) is among the few assets that have risen after the widespread downturn seen in the sector. The altcoin indeed recorded a rebound of almost 66% after the market collapsed. Let's find out how he achieved this feat.
A high market capitalization
Around mid-June, the native Binance Chain token plunged to over $183. Since then, it has recovered and even posted an insolent increase of more than 66%. Currently trading at $300, the asset is positioned at the same level posted in July 2021. Recall that at this time, the market capitalization of altcoins was valued at around $740 billion.
Bitcoin ( BTC ) and Ether (ETH) largely dominated the market. Altcoins were vying for the third spot on the list. With a market cap of $47 billion for BNB and $46 billion for ADA, the game was close. It is nevertheless the BNB that rose to third place.
To date, BNB remains unmatched and if other emerging cryptocurrencies continue to grow, the gap is still over $30 billion.
An ultra-complete ecosystem
We know that all decentralized applications, namely dApps, DeFi, games, and marketplaces, are managed by smart contracts. Through PancakeSwap, which is the in-house decentralized exchange, Binance offers users a more than comprehensive service.
Note that more than 1.98 million addresses are active on the platform. This is relatively huge compared to the Ethereum network and its three DApps namely Uniswap, OpenSea, and MetaMask Swap which compile 30,000 active addresses between them.
We can thus assume that the total value of user deposits in smart contracts is an indicator of success for a network. However, this only applies to financial applications. It is much less so for other applications such as games and NFTs in which users do not always keep large deposits.
If we base ourselves on this theory, then Ethereum wins the prize with more than 8.25 billion dollars in deposits.
High trading volumes
Over the past month, Binance has registered 300 million users on its platform. Coinbase, for its part, had less than half of that, or roughly 121 million visits. Still, Binance's utility offering isn't enough to explain its success. It would also be necessary to take into account the multiple applications of its native token, the BNB.
Indeed, it offers other benefits like reduced taxes in addition to the staking offer. On Coinmarketcap, BNB is currently trading at a price of $286.05, down 4.71% over the past 24 hours. The current trend in the price of the asset, however, remains upward. Indeed, the BNB has recorded an increase of almost 10.57% over the last 30 days.
In any case, we come to better understand why the native network has managed to rise among the most efficient on the market. Moreover, its native token BNB seems to have a fair price. This, in particular, is because of its third place in the ranking of world market capitalization.
For those wondering if it is still worth investing in BNB, the answer is yes. Price predictions remain positive. Analysts even predict a possible rise in the price of the token by the end of the year.
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