After a fairly stagnant weekend for the cryptocurrency market, the downtrend continues as all top 45 players are in the red. However, despite the serious market correction, Binance Coin (BNB) continues its uptrend — marking significant gains over the past week.
The entire cryptocurrency market marks a slight decline over the last 24 hours, currently capitalizing at about $274 billion — after having lost roughly $6 billion in 24 hours. Bitcoin is also trading in the red, standing at $6,476.07 – down 1 percent for the day, at the time of writing this writing.
The market’s second-ranked cryptocurrency, Ethereum, is also down more than one percent — currently standing at $496.11 after wiping out the gains made after last week’s SEC announcement.
Binance Coin Continues to Grow
Amid a sea of red, Binance Coin (BNB) is battling the downtrend, marking new daily growth.
At the time of writing this, BNB is trading at $16.97 — comprising an increase of almost 3 percent. For the last two weeks, however, Binance Coin has performed exceptionally well. On June 4, the coin marked a daily low of $13.72, meaning that it has made a flawless recovery, spiking by almost 20 percent to reach its current trading price.
Furthermore, BNB seems to be performing well across the board, as it marks an entire month of continuous increases. While its overall chart might be swinging, the fact is that this day last month it traded for $14.95 – approximately about 12 percent less than its current price.
Is There a Reason?
Binance has been quite active in the last few months.
Earlier last week, the exchange announced that it will be launching EUR trading pairs sometime this year.
Another major increase in the price of BNB followed last month’s announcement that the cryptocurrency exchange will be doubling referral commission rewards. The cryptocurrency exchange is also adding support for new cryptocurrencies fairly regularly, sparking increased interest from specific cryptocurrency communities.
Currently, traders who use BNB to pay their exchange fees directly can benefit from 50 percent fee discount. This percentage, however, is set to decrease with each year.
Furthermore, Binance also regularly buys back BNB and destroys them — hence increasing the value of the remaining coins even further.
All in all, while there is no single, isolated factor for the increase, it seems like the overall performance of the exchange is driving the value of its currency higher.
Do you think BNB will continue its uptrend or will the bears inevitably take over? Don’t hesitate to let us know your thoughts in the comments below!
Images courtesy of Shutterstock, CoinMarketCap.com.