On February 10, Binance Coin (BNB) hit a new all-time high of $ 148 after the native exchange token had risen 121% since the beginning of the week.
Data from Cointelegraph Markets and TradingView show the BNB rose from $ 35.37 on Jan. 11 to $ 148, an increase of 256% in less than a month.
Three reasons for BNB’s explosive price growth are the recent surge in trading volume to a new record high, the expansion of DeFi-related protocols to the Binance Smart Chain, and an ever-growing ecosystem supported by new partnerships and integrations.
Between September 2020 and December 2020, the BNB’s price traded between $ 23 and $ 35 with an average daily volume of $ 400 million. Since December 28, the 24-hour trading volume and token price has steadily increased as the Bitcoin (BTC) price hit new highs and DeFi was present across the crypto sector.
The BNB’s 24-hour trading volume topped $ 1 billion for the first time on February 1, and a new record of $ 7.52 billion was set on February 10 when the price was above $ 148.
The DeFi integration gives Binance an edge
Since 2020, centralized exchanges have ceded market share to decentralized financial protocols giving users access to newly introduced tokens and high APY returns for providing liquidity.
To make up for this loss of market share, Binance has incorporated new DeFi components, including the creation of Binance DEX, which supports some DeFi projects geared towards interoperability.
Binance also increased the number of tokens available on its betting platform, and the exchange increased the interest rates on each token to encourage investors to stay on the exchange rather than tracking the returns on SushiSwap and Uniswap.
The NBB plays a role in billing and transferring fees, increasing their volume and value in recent months.
New offers and partnerships
Binance wasn’t shy about quickly listing new projects from the DeFi sector, and these listings often result in a sharp surge in trading volume and the price of the newly listed token.
For example, when Uniswap and SushiSwap showed up and threatened to take over some of Binance’s trading volume, the exchange was counteracted by listing both UNI and SUSHI and many of the projects that were attracting investor attention.
Several prominent DeFi projects were initially started on the Binance Launchpad, the internal token launch platform with which blockchain projects can collect donations. More projects are added regularly.
Projects like Kava, working on the Cosmos (ATOM) blockchain, and Venus (XVS), working on the Binance chain, were incubated on the Binance Launchpad and have since grown into well-established DeFi projects that continue to gain momentum win.
Scrolling through Binance’s Twitter feed shows daily announcements of new partnerships and integrations. In order for investors to interact with many of these projects, they often use BNB as part of the transaction.
With a 24-hour trading volume of $ 32.8 billion, which is seven times that of closest competitor, Coinbase Pro, Binance continues to dominate the centralized and decentralized exchanges.
Binance Coin appears to be well positioned for further growth, especially given that BNB is an integral part of many platforms and processes at Binance.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.