Binance CEO Changpeng Zhao is reporting on social media the new ATH achieved by the Binance Coin (BNB), which reached $ 39.60, breaking the previous record a year ago.
– CZ Binance (@cz_binance) December 29, 2020
In fact, when looking at the token price trend graph, we can see that since mid-March, the period of the market crash, when it reached the low of US $ 9, it has recovered steadily until reaching current levels above the average of $ 30.
BNB’s price trajectory
This token was launched in the summer of 2017 through an ICO (Initial Coin Offers) and at the time the price was fixed at 1 ETH for 2700 BNB and 1 BTC for 20 thousand BNB.
It was an investment that these days yielded more than the invested cryptocurrency, considering that the BTC invested in BNB is worth an impressive $ 780k.
When the token was launched, the BNB was a traditional ERC-20 token on the Ethereum blockchain, with a total supply of 200 million tokens. Supply is expected to halve over time, thanks to firing operations that continue consistently.
- BNB is a utility token, as its main function is:
- get discounts on trades on the platform itself,
- pay fees using BNB instead of the encryption we are exchanging or withdrawing.
It is worth noting that with the advent of Binance Smart Chain, most projects that are born and developed in the area of decentralized finance (DeFi), such as token exchange protocols, are guaranteed by BNB as the main token and this has boosted demand by Binance Coin in these protocols.
However, it should be noted that other crypto assets are also showing positive results and scoring impressive numbers, as well as ATHs in 2020. This may just be a transition phase before all cryptocurrencies start to fall and cause users to lose enthusiasm and money.