As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I must say that BNB has been one of my most resilient investments this year. Despite the market turbulence we witnessed in August and September, BNB managed to hold its ground remarkably well, even gaining a modest 6.47% in September.
In the cryptocurrency world, the resilience of Binance Coin (BNB) stands out particularly well. Even when the markets experienced significant turbulence in August, BNB managed to lose only 7.56%. Impressively, it even made a gain of 6.47% in September, despite the steep drop on September 6th. Those considering shorting BNB might want to reassess their strategies, as the asset appears poised for an upward trend.
To date in October, Binance Coin has experienced a minor decrease of 1.01%. It’s been holding steady within the narrow price band it’s been in for approximately six months now. Upon closer inspection of the BNB chart, we can see that the asset is currently biding its time, waiting for market volatility to subside before making a run towards fresh record highs.
3 Reasons Why You Should Not Short BNB Price
The price of Binance coin has dropped approximately 1.9% over the past 24 hours and is currently at $561.20. This decrease aligns with the recent trend of falling cryptocurrency prices, triggered by a higher-than-expected rise in U.S. Consumer Price Index (CPI) for September, which climbed by 0.2%. Economists had predicted that the CPI would only go up by 0.1% instead.
The cost of Bitcoin fell beneath $60,000 due to this announcement, which in turn triggered a decline across the entire cryptocurrency sector. Over the past day, the overall market value of cryptocurrencies has dropped by 1.4% and currently stands at approximately $2.228 trillion.
Regardless of the ups and downs in the market, Binance Coin (BNB) generally holds the most stability compared to many other cryptocurrencies. Consider these factors before deciding to sell BNB at a lower price:
1. Strong Market Position
Binance crypto exchange remains one of the world’s largest and most influential cryptocurrency platforms, and BNB is at the core of its ecosystem. This strong market presence can provide robust support for BNB price.
In simple terms, Binance is currently the third-largest cryptocurrency in terms of market value (not counting stablecoins), which means it plays a significant role in the crypto market. The influence of BNB has expanded by an impressive 530% since December 2023, and its dominance now stands at 3.93%.
When an asset gains increased popularity and broad usage, this often triggers a rise in demand, which in turn tends to elevate the asset’s price. As the bull market approaches and more people seek out Binance exchange and network, it’s expected that BNB‘s influence will expand, potentially causing fluctuations in its value.
2. Utility and Use Case
Beyond being a potential investment for speculation, BNB plays a significant role within the Binance platform. It provides transaction fee reductions, access to token sales, and additional advantages. This continuous demand can contribute to its stability and potentially increase its value.
Furthermore, the ongoing burning of BNB tokens consistently reduces their circulating supply, which coincides with escalating demand. This dynamic is expected to drive up the token’s price significantly.
BNB employs an immediate burn mechanism, where a predetermined proportion of gas fees gathered is destroyed within each block. The rate at which this happens is determined by the validators on the Binance Smart Chain (BSC).
Furthermore, it’s important to note that there are planned quarterly token burns. Specifically, in Q3, approximately 1.7 million BNB worth around $932 million were burned. It is anticipated that the Q4 burn will be about 1.6 million BNB.
3. Historical Price Performance
Despite market fluctuations, Binance Coin (BNB) has demonstrated exceptional resilience and consistent growth. Notably, throughout its entire price history, BNB has never fallen below the upward trendline depicted on the chart. Furthermore, each time it approached this line, it reached new record highs.
Investing contrarily to a cryptocurrency boasting such an impressive history could prove hazardous, given the optimistic outlook surrounding its potential advancements.
Conclusion
The price of BNB carries significant weight within the crypto market due to the scale of the associated exchange. With an impressive track record, Binance Coin appears ready to surpass its previous highs during this bull run. Nevertheless, there may be a brief phase of consolidation ahead, potentially leading to a 14% decrease in value.
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2024-10-11 12:19