The year is halfway over, and the crypto market is still down roughly 40% (to $1.3 trillion) from 2021. But the industry has a track record of bouncing back from bear markets, making this potentially a great time to buy quality tokens at a discount.
Let's explore why Binance Coin (BNB -2.07%) and Tron (TRX 2.69%) could be great bets in June and beyond.
1. Binance Coin
Binance Coin is a cryptocurrency issued by Binance, the world's largest cryptocurrency exchange. The platform has a 24-hour trading volume of $17 billion (at the time of writing), according to data from CoinMarketCap. Binance Coin's association with a massive real-world organization gives its developers plenty of room to create utility. And the token's deflationary design will help support its price over the long term.
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Binance Coin's primary use case is on the Binance Exchange, where it currently offers a 25% discount on trading fees. This feature allows it to scale with Binance's growth because the more people trade on the exchange, the more potential demand there is for Binance Coin. The asset also has more general use cases as a store of value and medium of exchange through Binance's e-commerce solution, Binance Pay, which allows merchants to accept Binance Coin and 30 other cryptocurrencies at checkout.
Binance Coin has a maximum supply of 200 million coins, with roughly 163 million in circulation today. The blockchain boasts an auto-burn system designed to reduce the circulating token supply to 100 million by sending a portion of transaction fees to an accessible address. This process can help support Binance Coin's price by reducing token supply relative to demand.
2. Tron
Founded in 2017, Tron is a blockchain designed to support decentralized applications (dApps). These are peer-to-peer programs able to operate on the network without a centralized intermediary such as a central server. The platform's blazing fast speed and low valuation make it a possible alternative to larger rivals.
With a transaction capacity of 2,000 per second, Tron trounces other large dApp platforms like Ethereum and Cardano, which handle 15 and 250 transactions per second, respectively. Tron achieves its speed through a proof-of-stake (PoS) mechanism where users lock in, or stake, their tokens to verify transactions in return for new tokens.
Tron aims to make it easier for creators to share content. And in 2018, its developer, the Tron Foundation, acquired file-sharing platform BitTorrent for $140 million to eventually incorporate this business into its decentralized ecosystem. While the specifics are unclear, Tron's willingness to work with both crypto and "real-world" assets could help it differentiate itself in the competitive blockchain industry.
Tron is the 13th-largest cryptocurrency with a market cap of $7.8 billion. And although it is hard to value cryptocurrencies because of their lack of revenue or earnings, this is relatively cheap compared to other top assets (Ethereum has a market cap of $235 billion). Tron's low valuation may leave more room for long-term expansion as the industry potentially recovers from the bear market.
Scale vs. growth potential
While Binance Coin and Tron are both great picks for investors who want to bet on the crypto rebound, they serve different investment strategies. With its massive scale and relationship with an established real-world financial institution, Binance Coin looks like a safer bet. Tron is ideal for investors willing to bet on a smaller, less proven platform with potentially more room to grow because of its significantly smaller size.
