Binance Coin (BNB) Becomes 8th Largest Crypto After Gaining 75% in a Month

Francisco Memoria

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.

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.

Binance coin's performance in the last 30 days

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.

Crypto market's performance in the last 30 days

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.

Cardano (ADA) on Fire: Surges Above $0.10 to Get Into Top 6, Up 206% in 2020

At 16:00 UTC on Friday (July 3), shortly after IOHK, the company developing the Cardano (ADA) protocol, announced a custody agreement with Coinbase, the price of the ADA token went over $0.10 for the first time since October 2018, thereby making ADA the sixth most valuable cryptoasset by market cap.

Yesterday, on day two of the two-day "Cardano Virtual Summit: Shelley Edition", IOHK Co-Founder and CEO Charles Hoskinson announced that from Q4 of this year, Cardano blockchain users would be able to store their ADA holdings at Coinbase Custody "without losing the ability to delegate their stake."

On Tuesday (June 30), IOHK announced that the Shelley upgrade had gone live on the mainnet:


Hoskinson had this to say about his company's agreement with Coinbase Custody, which "operates as a standalone, independently-capitalized business to Coinbase, Inc.":

"With Cardano, we believe we can create a revolutionary solution which will be able to offer access to finance and investment to swathes of the population who have previously been shut out of the system.

"This custody agreement allows us to offer the same secure storage solutions that can be found in traditional finance to ada holders, without sacrificing what makes Proof of Stake blockchains special - being able to participate in the network.

"We look forward to this partnership with Coinbase, and to continuing to bring cryptocurrencies closer and closer to mainstream adoption."

As for Sam McIngvale, Head of Product at Coinbase Custody, he said:

"We have been following the success of the Cardano incentivized testnet, with over a thousand registered stakepools during the testing period.

"We are pleased to have been selected as the custodian and we’re proud to be a full-service, regulated, comprehensively-insured, and 100% offline staking provider in crypto.

"The ability to successfully operate within a regulatory framework is essential for the long-term survival of cryptocurrencies.

"We are overseen by the same regulators, and held to similar capital requirements and audit requirements as a traditional financial custodian, which removes many of the perceived barriers to global acceptance of crypto."

IOHK's announcement was made just before 14:00 UTC on Friday (July 3). By 16:00 UTC, the ADA price had broken through the $0.10 resistance level for the first time since October 2018.

Currently (as of 07:34 UTC on July 4), Cardano's token is trading at $0.1003 (up 6.94% in the past 24-hour period), which makes it the sixth most valuable cryptoasset by market cap:

24 Hour CC Chart for ADA-USD on 4 July 2020.png

So far in 2020, Cardano's ADA has gone up over 206% vs. the dollar.