At a time in which the cryptocurrency market has been managing to make mild gains, with its total capitalization moving up around $40 million in the last 24 hours, Binance’s BNB token has been standing out due to its price’s performance.
According to CryptoCompare data, among the top cryptocurrencies the BNB token is seemingly the best performer of the day, up by over 2.2% in the last 24-hour period, a move that appears to be related to the company’s decentralized exchange, which is still being tested and has seen CEO Changpeng Zhao announced a $100,000 in BNB trading competition to support it.
To test the hell out of @Binance_DEX, we are giving away roughly $100,000 USD equivalent, in REAL $BNB, as reward for our testnet trading competition.— CZ Binance (@cz_binance) March 1, 2019
You have nothing to lose!
Come and join the fun, and help us launch the mainnet faster! https://t.co/2NK8LVVAGY
The BNB token has, in fact, seen its price rise over 74% in the last two weeks, greatly outperforming the cryptocurrency market in general. The token has during last year’s bear market helped traders buck the bearish trend, while giving its holders discounts on trading fees.
Binance’s whitepaper notes that the token gives users discounts that are going to get smaller every year, just like the coin’s supply itself. The exchange uses 20% of its profits every quarter to buy back tokens and destroy them, until half of its 200 million supply has been bought back.
The token’s performance has seen it become the 8th largest cryptocurrency by market cap, as it recently managed to surpass TRON’s TRX and Stellar (XLM) in the top 10.
Helping it rise was likely also a report published by crypto-focused investment firm Multicoin Capital Management, which notes that “BNB is the best example of the discount token model we've come across,” as token holders “have a claim on Binance's cashflow (they have received $125M in cash flows through token buybacks over the past 1.5 years since Binance was launched).”
The report further noted that although the company’s decentralized exchange, Binance Chain, will likely affect Binance’s revenues, token holders may be able to stake their tokens to process trades on the platform, potentially “transforming BNB into a yield-generating asset.”
Crypto Market Sees Mild Gains
The cryptocurrency market in general has, in the last 30 days, risen little over 13%, partly also thanks to BNB’s risen. This, according to the MVIS CryptoCompare Digital Assets 100 Index, a market cap-weighted index which tracks the performance of the 100 largest cryptos.
In the last 24-hour period, the cryptocurrency still stands out, along with EOS which is up by 1.7%. Ethereum and Bitcoin Cash are among the top cryptocurrencies that have seen their price rise in said period, as they’re up by 0.1% and 0.35% respectively. XRP, NEO, Litecoin, and Bitcoin are all down between 0.3% and 0.1%.
Overall, the market has seen some mild gains.in said period, as the market’s capitalization has moved up by little over $40 million in 24 hours.