The start of the quarter positive Bitcoin movement has generally bode well for the crypto market, seeing most coins slightly recover alongside the market king as well. However, the recent run hasn’t been that favorable to BNB token, currently 17th placed token on the cmc’s list of most valuable cryptocurrencies with a market cap of $1.57 billion USD. The coin had an excellent run from the middle of June, when it went up from $14.5 USD to just above $17 USD, providing a solid store of value and an opportunity to make gains during a period where everyone expected Bitcoin to keep falling. It then attempted to consolidate near the end of the same month but ended up being plunged into a correction by the resurging Bitcoin market.
It has since slid down slowly, falling from $16 USD levels all the way to $13.36, where it stood on July 6th. The weekend saw it recover somewhat, probably reacting positively to a lack of bullish Bitcoin sentiment on the market as everyone cautiously waits for further confirmations of a new bull run. The price exploded to $14.35 USD before experiencing a correction towards $13.84 USD. The token is currently traded at $13.74 USD, experiencing a 2.15% daily recovery.
Historically people saw that BNB token has counter-trading potential against BTC. Ever since March this year BNB/USD pairing kept a clear pattern of going against the BTC/USD, rising whenever Bitcoin would lose dollar value and falling whenever BTC would gain it. This would suggest that investors started looking into BNB as a means of storing value during a bear market, since it is one of the rare cryptocurrencies that have an actual use case and a constantly growing demand.
Of course, BNB is created and owned by the Binance exchange, currently one of the most reliable platforms on the market. Changpeng Zhao, the owner of the exchange, recently spoke to Bloomberg about the future of his enterprise.
Zhao confirmed that his company expects to make from $500 million to $1 billion USD in profits by the end of 2018. Considering the fact that these past two quarters saw it earn a cool $300 million, those end-of-the-year numbers don’t seem far-fetched at all. If they are achieved, Binance will be looking to best many banking establishments in terms of profitable enterprising.
The company has grown significantly in 2018, even with the long-running bear market disheartening effect on the average investor. The number of total customers on Binance has risen from 2 million in 2017 to 10 million users which are there today, generating an average of $1.5 billion USD in daily trade volume. And while there have been murmurs of Binance artificially inflating its trade volume, no one has so far managed to find any concrete evidence for this.
The BNB coin remains one of the most intriguing coins out there as it has shown that its USD value moves against Bitcoin almost to the T. Interestingly enough, its BNB/BTC value remained almost intact every time Bitcoin decided to move, indicating that BNB is in fact a strong token with real world value and utility. As long as Changpeng Zhao keeps running a tight ship at Binance, we should see BNB remain one of the best stores of value on the market.
