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BNB hit all time high despite the extreme bearish market and the Binance coin touched 0.015 all time high and updated it 0.0196 soon after.
Last updated Jan 18, 2023 at 12:59 AM
Posted Jan 17, 2023 at 10:28 PM
Even those with a basic understanding of cryptocurrency can see that Bitcoin is the best-known cryptocurrency and accounts for a significant portion of the market cap. Numerous other altcoins began to catch people's attention not long after Bitcoin gained some notoriety. When BNB was introduced as a cryptocurrency in 2017, it was initially developed on the Ethereum network before moving to Binance. Since then, the Binance coin has been doing exceptionally well, and in 2022 it was one of the only coins to resist the effects of the bear market.
In general, a number of variables, such as market demand, investor interest, the regulatory landscape, and the overall health of the cryptocurrency market can impact the value of any cryptocurrency.
Bitcoin continues to be the oldest and most well-known cryptocurrency and has the largest market capitalization of all cryptocurrencies. In addition to being used as a method of commerce and a tool to move money between parties, bitcoin is sometimes viewed as a store of value and protection against inflation.
On the Binance platform, Binance Coin (BNB) is used as a store of value, a medium of exchange, and a way to pay fees. BNB's value has increased significantly since its inception, but it has a lesser market capitalization than BTC.
All four quarters of 2022 were down, as the market cap for cryptocurrencies dropped from $3 trillion to less than $1 trillion. We witnessed the collapse of the Terra Luna biosphere when FTX dipped to zero and dragged Solana down by more than -96%. Even the value of Bitcoin and Ethereum fell by more than 60% and 63%, respectively, in 2022. However, the BNB cryptocurrency from Binance was one of the very few that resisted the gloomy market and lost only 45% of its value.
If we look at the market capitalizations of BNB, Bitcoin, and all cryptocurrencies over the past six months, we can observe that BNB lost only 12% of its value while Bitcoin lost 34%. During this time, only BNB reached an all-time high in relation to Bitcoin.
BNB's price action was remarkable due to a variety of technical and fundamental variables. On October 30, as the price of BNB against Bitcoin reached 0.015, the BNB/BTC pair reached a new record high. The price continued to rise until November 8, 2022, when it attained a brand-new record high of 0.0196. Since July 2022, BNB has increased by almost 50% while Bitcoin has decreased by almost 16%.
What led to this? The short explanation is that over that time, Bitcoin's value declined while BNB's value rose or remained stable. As a result, Bitcoin became less expensive, while BNB's value climbed in relation to Bitcoin. When a coin appreciates in value relative to another coin, this is what typically happens.
The true mystery, though, is how BNB was able to withstand the bearish wave that drove Bitcoin lower. Let's examine each potential factor that contributed to BNB's undeniable success throughout the crypto summer.
Evidently, Binance made investments to combat bots under the new leadership of Elon Musk, but these investments had a significant influence on the price of BNB. On October 27, Elon Musk said that "the bird is liberated" to complete the Twitter agreement.
After that, on October 30th, BNB/BTC reached an all-time high after surviving the bearish wave that had been stifling the price of Bitcoin. Even a week later, the price kept rising up until November 8, when the currency recorded a new ATH.
One of the most powerful people in the world, Changpeng Zhao, also known as CZ, the CEO of Binance, supports the ecosystem. With over 8 million Twitter followers, he actively supports and promotes the projects run by Binance as well as the in-house coin BNB. Cryptocurrency is unreliable; it greatly depends on the news and goodwill that are spread through Zhao's tweets and blogs. Binance has been actively building even during the days when the market was quite negative, helping it keep it from experiencing the catastrophe that occurred in early November. The discovery that the FTX exchange used customer cash dealt a severe blow to the centralized cryptocurrency exchanges.
Customers' trust was severely damaged, but CZ already had plans to regain it. In order to develop Proof of Reserves, a system for the exchanges to demonstrate their holdings through an impartial audit, he was already collaborating with the Ethereum co-founder. Binance was saved from serious problems by this prompt and decisive action, which also supported the price of BNB in all pairs.
Centralized crypto exchanges are now adhering to the PoR mechanism to win customers’ trust. CoinMarketCap, the crypto watcher, has added a feature to check if an exchange provides PoR or not.
Binance Coin (BNB) is the native cryptocurrency of the Binance exchange platform, which offers several advantages over Bitcoin, including faster transaction speeds and lower transaction fees. Binance Coin can also be used to pay for transaction fees on the Binance exchange, which can provide a significant discount.
Additionally, Binance Coin is built on the Ethereum blockchain, which supports the use of smart contracts, whereas Bitcoin does not. This allows for the development of decentralized applications (dApps) and other advanced features that are not possible on the Bitcoin network.
Binance's leadership and strategic vision have also been important factors. The leadership has been able to effectively navigate the crypto market and make savvy business decisions that have helped the platform to grow and evolve over time.
Finally, Binance has been targeting the global market by providing trading services in different languages and providing crypto-to-fiat trading pairs in different countries with the help of Binance Fiat Gateway. This allows them to increase their user base and revenue stream as well.