February 10th Binance Coin (BNB) hit a new all-time high of $ 148 after the exchange’s native token had risen 121% since the beginning of the week.
Data from Cointelegraph Markets and TradingView show this The NBB jumped from $ 35.37 on Jan. 11 to $ 148, an increase of 256% in less than a month.
Three reasons for the explosive growth of the BNB price are: The recent surge in trading volume to a new record, the expansion of DeFi-related protocols to include Binance Smart Chain, and an ever-growing ecosystem supported by new partnerships and integrations.
Between September 2020 and December 2020 The price of the BNB was trading between USD 23 and USD 35 with an average daily volume of USD 400 million. Since December 28, the 24-hour trading volume and token price has steadily increased as the price of Bitcoin (BTC) hit new highs and DeFi was present across the cryptocurrency sector.
BNB’s daily trading volume topped USD 1 billion for the first time on February 1st and a new record volume of USD 7.52 billion was set on February 10th when the price exceeded $ 148.
The DeFi integration gives Binance an edge
Since 2020, centralized exchanges have ceded market share to decentralized financial protocols, giving users access to newly introduced tokens and high APY returns for providing liquidity.
To compensate for this loss of market share, Binance introduced new DeFi components, including the creation of Binance DEX, which supports some DeFi projects that focus on interoperability.
Binance also increased the number of tokens available on its stakeout platform and the exchange raised interest rates on each token to encourage investors to stay on the exchange rather than tracking the returns on SushiSwap and Uniswap.
The NBB plays a role in handling commissions and transfers, increasing their volume and value in recent months.
New offers and associations
Binance had no qualms about quickly listing new projects from the DeFi sector, and these listings often result in a sharp surge in trading volume and the price of the newly listed token.
For example, When Uniswap and SushiSwap came on the scene threatening to take over some of Binance’s trading volume, the exchange countered by including both UNI, SUSHI and many of the projects that attracted investors’ attention.
Several major DeFi projects were originally started in Binance Launchpad, The internal token launch pad that blockchain projects can use to raise funds and add more projects on a regular basis.
Projects like Kava, that works on the blockchain Cosmos (ATOM), Y. Venus (XVS), The employees of the Binance chain were incubated on the Binance Launchpad and have since evolved into established DeFi projects that continue to gain momentum.
Scrolling through Binance’s Twitter feed shows daily announcements of new partnerships and integrations and In order for investors to interact with many of these projects, they often use BNB as part of the transaction.
With a daily trading volume of $ 32.8 billion, a 7 times higher number than its closest competitor Coinbase Pro, Binance continues to dominate between centralized and decentralized exchanges.
Binance Coin appears to be well positioned for further growth. especially when you consider that BNB is an integral part of many platforms and processes at Binance.
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