There is one question that’s mind-boggling for many experienced cryptocurrency traders & enthusiasts. Utility, Liquidity, and Total Token Supply should define the price of coins. However, there’s one digital asset that has a price not dependent on those traits. This is leaving many to ask one question; Why is Binance Coin (BNB) worth so much less than Bitcoin (BTC) and Ethereum (ETH), if it’s better?
The Binance Coin is the native cryptocurrency of the world’s number one centralized crypto exchange and the best layer-1 blockchain per its era and before. While the cryptocurrency has risen dramatically in price since its initial coin offering of 15 cents per $BNB coin, it’s still far from seeing millions of percent in growth like native coins of lesser ecosystems.
What you'll learn 👉
Total Token Supply: $BNB vs $BTC
For comparison to Bitcoin (BTC), which has a total token supply of 21-million coins and is valued at US$102,000 today, Binance coin is worth less than 1% of the world’s most known coin.
Differences in Market Cap
The BNB, which has a max supply of 142.8 million, only holds a value of US$668 which is under 1% of a Bitcoin. The total supply is slightly under 7x the total of BTC, while it has a market cap of US $94.4 Billion. The MC is quite impressive, considering it’s 1/20th [one twentieth] of Bitcoin.
Even if you divide Bitcoin’s price by a twentieth for the difference in market cap and by another 7th for the total supply, the price today should be over US$728.
Binance Ecosystem Will Have Its Own Store of Value Asset Soon
However, take into account that Binance has its own potential store of value cryptocurrency (Bitnance: $BTN) in presale now, a faster & more scalable layer-1 blockchain, and lower transactions fees; then the question still remains; Why is it’s price not far higher?
Some speculate that Binance Coin (BNB) is a representation of the true value of a cryptocurrency when there’s no market manipulation from wealthy entities like Black Rock, Microstrategy, and other Billionaire Boys Club members. If this is true, in a market crash it or its new SOV token may be the safest vehicle to have funds versus other networks.
The other theory is that BNB coin is due for an explosive price growth that could see it go up in value by +300% or more, with governments announcing they will utilize the Binance ecosystem for strategic reserves or financial transactions.
With Binance now being alleviated of restrictions by Gary Gensler and the SEC, alongside Changpeng Zhao being a free man, the continual growth of the project seems sure. It’s one of the only major cryptocurrencies that has not seen traumatic volatility per price charts and a wise investment by some strategists.
Crypto Investment Opportunity
And for those aware of the “Bitnance (BTN)” project that’s on the horizon, perhaps it is also time to pay attention to the BEP-20 store of value assets. With only half of the total token supply of Bitcoin, it’s a direct competitor for the market share $BTC has a strong hold over. Currently selling for $0.375 cents per coin durings its initial coin offering, if it rises in value over the next few years in a similar trajectory to BNB, millionaires will be made from investments of $1000.
To date, slightly over 111,000 Bitnance tokens have been purchased by investors. It will launch on crypto exchanges after the presale allocation has been sold.
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