In the cryptosystem the number of options varies, but among the main ones we have Binance Coin (BNB). However, despite the fact that it has become better known, many wonder whether or not it is a good option. We will try to answer this question.
First, you should know that BNB feeds the Binance ecosystem, specifically as the main currency of the Binance Chain. Therefore, it has several uses: fueling Binance Chain transactions, paying Binance exchange transaction fees, making payments in stores, and many more.
Binance Coin (BNB): where is it currently located?
With all the projects that Binance is carrying out as a company, it may become increasingly attractive to use BNB. Changpeng Zhao himself has stated that one of his goals is precisely to position this cryptomoney more and more.
So far, Binance Coin (BNB) has improved a lot in terms of market capitalization. Thus, at the time of writing, its market capitalization is around US$ 2,479,818,932 and its daily volume has been US$ 156,517,494.
The latter positions it as one of the 10 tokens with the best prospects for the medium and long term.
Looking at the charts, is it time to buy the Binance token?
Analyzing its price, and looking at the graph of the last six months, we will notice that BNB had a significant drop in March, following the pattern of BTC, but then it was maintaining a kind of recovery until it almost stagnated in the area of US$ 15-16.
Binance Coin (BNB) six-month graph, showing that there has been a sustained recovery since March, but almost stagnant. Source: CoinMarketCap
Binance Coin (BNB) six-month graph, showing that there has been a sustained recovery since March, but almost stagnated. Source: CoinMarketCap
At the same time, if we look at this chart but with the Bollinger Bands indicator we will confirm the previous point. That is, you will notice that little by little the channel formed by the standard deviation on the upper and lower levels has become narrower. This indicates that somehow BNB has remained less volatile.
Projections and data
The moving average of GNI for the last 25 days was US$ 16.96, while that of the last seven days was US$ 16.98. In order to talk about a change in the upward trend, BNB would have to break above this level in a sustained manner, and then exceed US$ 18.
Similarly, so far BNB has followed more or less the same pattern as Bitcoin. In other words, BNB has had similar declines and in the last week it has remained just as stagnant as Bitcoin.
To corroborate this, we look at the BTC price chart for 2020 and we’ll see a pattern of behavior similar to that of BNB’s price at the same time.
To be able to estimate a projection, we could say that BNB could have a radical price change to the extent that BTC does. However, BNB may emerge in the medium term with a little more independence from BTC if Binance continues its growth and positioning.
In other words, increased trading activity at Binance, as well as the percentage increase in quarterly earnings, could help increase the divergence between Bitcoin Future and BNB’s swings, and give BNB a little more independence.