Why Binance Coin (BNB) Is Up 5% Today
KEY POINTS
- BNB powers the BNB Chain ecosystem of wallets, research projects, and the largest cryptocurrency exchange globally.
- BNB is up 5% today, but down 55% from last year's high.
- A Bloomberg report reveals that Binance Holdings Ltd. is being investigated by U.S. regulators.
BNB perseveres through a bear market and securities investigations.
Binance is a cryptocurrency exchange and its native token which can be used to trade and pay fees on the exchange is BNB. BNB is also the cryptocurrency that powers the BNB Chain ecosystem, which includes Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet, and Research projects. This vast ecosystem makes Binance the largest cryptocurrency exchange based on daily trading volume.
BNB's daily performance
Although BNB is up 5% today, it is still bearish compared to its performance last year. Like many cryptocurrencies, BNB went on a bull run in October and November of last year, seeing highs of $654.32. Today, the price is $291.92, down 55% from the high. That's not to rain on BNB's parade, however. It is impressive that the coin is in the green, in light of recent news.
As regulations around cryptocurrency become more defined, regulators are able to move forward on investigations into the world of digital currencies. Binance Holdings Ltd. is currently being investigated as to whether it broke securities rules by selling digital tokens in 2017, when the exchange was just taking off.
BNB dipped 4% when the news of this was initially released on Monday. But since then, it has come back up to where we see it today. Overall, BNB is a strong coin, as it is the utility token for the largest cryptocurrency exchange globally. Though it is impacted by the bear market like many other cryptos, it certainly should not be counted out at this point.
It still powers the Binance Chain ecosystem which is a user-friendly, innovative, cost-effective, and scalable blockchain. As many exchanges and platforms are making nods to social media, Binance is also currently working on a community-focused platform where more people can benefit from its DeFi strategies.
So, another day in the bear market but a glimmer of hope for Binance Coin as it sees a 5% pop today.
Our Research Expert
Katie Clinebell is a freelance content creator and digital marketing strategist for FinTech, blockchain, and crypto brands. She has created award-winning campaigns for Snapple and Tai Pei Frozen Asian Food and received an Adobe Academic Achievement Award for content about Olympic athletes.
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