Binance Coin (BNB) has spiked up to $9.7 from $5.54 which is a 75% increase since January 14 against the US dollar and in today’s altcoin news we will find out what spiked the price rally.
In the same time, the value of the entire crypto market dropped by $3 billion from $124 billion to approximately $121 billion.
Binance Coin has managed to outperform all of the top 20 cryptocurrencies by an incredible rate and has become a part of the top 10 cryptocurrencies for the first time ever. One of the factors for this increase is possibly the decreasing circulating supply, its performance during the bear market and its decentralization. Of course, there is a multi-billion dollar business standing behind it.
The Binance team has eliminated a $9.4 worth of BNV back on January 16 which was a portion of the circulating supply of the asset. At that time, Binance CEO Chengpeng Zhao said:
“Burn complete. I remember when I did the first burn of $1,500,000 USD equivalent in BNB, I was nervous as hell. Now, well, I am still nervous, lol. Fastest way to spend money.”
Binance burns the circulating supply of the coin every quarter. BNB was initially issued as a way to finance the exchange but after Binance become one of the best exchanges out there, it used the 20 percent of the profits to buy back the BNB and decrease the supply of the asset.
On the other hand, the market lost a chunk of its value and it is still expected in the next couple of days to retrace some of the larger gains if the cryptocurrencies manage to hold on to their momentum at current levels.
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