Binance Coin price hit an all-time high at $46.88 on January 18, daily volume at life high. Binance Burns 3.6 Million tokens in 14th quarterly token burn.
Binance Burns 3.6 Million BNB Tokens
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Binance Burns 3.6 Million tokens and has removed $165.8 million tokens away from circulation, announced the exchange on Monday. About 13% of the total Binance coin supply has already been burnt in 3 ½ years. On Monday, Zhao has committed to burning 100 million BNB’s to reduce the supply. It is the 14th quarterly token burning by Binance.
Binance Volume at Record High
Binance daily volume was at a life high at $80B, across the cryptocurrency platforms in a 24 trade activity. The price rally in Binance is caused by investor interest in the cryptocurrency, as it is a trusted name in the crypto industry.
Changpeng Zhao is the CEO of Binance, which is the largest crypto exchange in trade volume. On 4th January, Binance saw high activity to hit 80 billion in a 24-hour. The CEO says that the record activity is 4-times the volume done between 15th November 2017, and 15th December 15 2017. Changpeng Zhao also states that disruptions occurred in the platform when the record volume happened.
There is more room for the upswing, say experts. High volatility is seen in the crypto market, which has attracted more users into the market.
Binance Cryptocurrency
Binance has a Peer-to-Peer platform that supports cash transactions. The user can buy and sell Bitcoins safely. The cryptocurrency exchange Binance launched Binance Coin in 2017 and has claimed 10th place in the crypto market. About $15 million was raised in an ICO to bring in the Binance Chain network.
The Bitcoin Standard Hashrate Token (BTCST), launched in the first week of January 2021, helps users get the decentralized finance experience (DeFi). New token awards are available to users for staking.
Payment of fees is the topmost advantage of Binance Coin. When users pay their fees through the Binance coins, they get discounts for using the coins that are valid for four years. However, Binance does not support fiat currencies and is used for trading between various cryptos.
Price Prediction for Binance for 2021
Experts predict that BNB may rise 17% in the New Year. The previous all-time high at $30.17 was crossed at the beginning of this year. However, price volatility will increase, say experts. By 2022, Binance is expected to hit $100, though it will not sustain at this level for long. Even if prices go down, BNB may not move below $28.30. The long-term view of Binance is also good, as it is expected to attract more investor interest. The psychological level at $50 is very close, and the Binance Coin price is moving towards this level.
Binance may have entered the bull race even earlier, but the coronavirus pandemic that began in March 2020, arrested the cryptocurrency. Investor confidence went down, and a global financial crisis was seen, with severe lockdown measures taken in all countries. However, the crypto has never fallen below $10.
Rally in Other Cryptocurrencies
When the world’s largest cryptocurrency Bitcoin rallies, other altcoins are pulled into the market flow. The Bitcoin rally brings in additional investors in other cryptocurrencies such as Ether, Binance, Cardano, Polkadot, and Chainlink.
Meanwhile, Bitcoin has consolidated above $30,000. Bitcoin has moved from $29,000 to $35,000, which is an increase of 20%.
Ether, which started the year at $750, has doubled to $1,400 on Tuesday, January 2021.
However, the third-largest cryptocurrency, Ripple has gone down with the US SEC lawsuit. This is another reason for the rally in other cryptocurrencies, especially in Ethereum and Binance. Ether is cheaper than bitcoin in terms of per-unit price.
The Bitcoin rally may continue to take the crypto to $14,600, increasing its value as an asset class, competing with gold, say JPMorgan & Co.
Bitcoin has been sliding lower this week, moving below the 10-day moving average. The cryptocurrency has fallen for the second day. After moving to almost $42,000 in January 2020, Bitcoin has dropped 17%. The increase is excessive say critics, who fear the crypto rally may be the cause of speculative participation. Bitcoin is now officially termed as “the most crowded trade” in the world.
Cryptocurrency Bubble
Bitcoin saw a massive rally recently. It reached a low of $4,000 in March 2020 when the coronavirus pandemic started. The world’s oldest cryptocurrency has gone up almost 900%, rallying with the strength to scale new all-time highs. However, experts warn of a bubble building up in the cryptocurrency. The highly volatile crypto market has many active users, who are on the increase. With new users entering the market, there is a spike in volatility. Institutional interest is increasing for speculative purposes, and this is a cause of concern, as speculative dealings may cause a crash.
The collapse seen in 2017 may return to the cryptocurrency market, say experts. Cryptocurrency users are issued warning that there are many loopholes in the crypto market. The lack of regulation has allowed for the laundering of money by criminals.
