Binance Coin (BNB) price against the US Dollar has jumped 75% in the last 1-month span. It has increased from US$5.54 to US$9.7 within a month. This phenomenal rise in
It’s an incredible performance since the crypto market’s valuation dipped by US$3 billion (from US$124 billion to US$121 billion) during the same time. At press time,
Binance Coin (BNB) Price is seeing Phenomenal Increase: Why?
The major reason behind this spectacular rise of Binance Coin price is the associated fundamental factors including:
- A decrease in circulating supply
- Multi-billion dollar business
Binance’sperformance even in this bearish market
- Decentralized exchange’s prospects in the near future
A Decrease in Circulating Supply
The Binance team has burned US$9.4 million-worth BNB coins on January 16, 2019. The coins are burned out of the then circulating supply of the coin, thereby eliminating a part of Binance Coin’s circulating supply.
Binance CEO Changpeng 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.”
This factor positively affected the BNB coin’s short term rally. The Binance Coin price increased phenomenally since January 16, 2019, after the Binance Team successfully eliminated 1,623,818 BNB coins. This is a regular phenomenon as the whitepaper of Binance Coin says:
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining”.
Photo Credit: https://www.pexels.com/