BNB, issued by Binance, the world’s largest exchange, hit an all-time high. While major altcoins hav..
BNB Has Low Levels Of Volatility Among Utility Strengths Altcoins, including $846 Record-High-Price Binance Benefits, A Fewer Combustion Algorithm
BNB, issued by Binance, the world’s largest exchange, hit an all-time high. While major altcoins have recently been on the rise, the warmth has spread to BNB.
According to CoinMarketCap on the 28th, BNB reached an all-time high, trading at $846.23 at one point on the day.
As of 10 a.m., BNB is trading at $843.68, up 5.91% from the previous day.
BNB has risen by about 11.83% over the past seven days. As of the last 30 days, it has risen by 30.68%.
BNB is considered a relatively stable upward-facing coin among altcoins.
In fact, according to TradingView, BNB’s volatility was only 3.07% as of the 30th. It is lower than major altcoins such as Ethereum (4.98%), XRP (6.47%), Solana (5.30%), and Dogecoin (7.90%).
One of the reasons why BNB can be more stable than other altcoins is the “burn” algorithm.
The total issuance of BNB was 200 million, but it uses an algorithm to reduce it by continuously burning the distribution volume traded in the market.
Finally, BNB’s goal is to reduce distribution to 100 million units. According to CoinMarketCap, BNB’s circulation has decreased to about 139.28 million units.
When the total distribution volume decreases, the value of BNB held by investors naturally rises.
The fact that BNB holders can receive several Hetags on the Binance Exchange is also leading to a downward defense of the BNB.
This is because the benefits provided by Binance work as a utility for BNB.
Representative benefits from holding BNB include discounts received when paying fees with BNB and airdrops (providing virtual assets in the form of events) for BNB owners. Binance also provides a “Lunchful” service that allows you to receive new tokens by depositing BNB.
In addition, expectations for a crypto stockpile strategy that is spreading from Bitcoin to Altcoin are also cited as a rising factor for BNB.
After the strategy led by Chairman Michael Saylor successfully introduced its bitcoin stockpiling strategy, companies with Ethereum reserves such as Bitcoin and Sharplink Gaming have recently been in the spotlight.
In addition, companies that strategically stockpile BNB have begun to appear. BNB seems to have judged that the stockpiling strategy works as it has a structure in which distribution volume is steadily decreasing.
Windtree Therapeutics, a Nasdaq-listed and biotech company, announced on the 16th (local time) that it would raise $200 million to stockpile BNB.
Nano Labs, another Nasdaq-listed company, also announced on the 22nd that it has 120,000 BNB. Nano Labs has finally set a goal of holding 5-10% of BNB’s distribution.
Meanwhile, prior to BNB, Bitcoin and XRP reached all-time highs on the 14th and 18th, respectively. Ethereum is also trading at its highest price level this year, soaring about 59% over the past 30 days.