As slow as the cryptocurrency market has been in 2019, that doesn’t mean that there isn’t profit to be made. Quite a few cryptocurrencies gained substantial value since the beginning of the year, including TRON that went from $0.018 to $0.024, Litecoin that went from $30 to $43, HOLO that doubled in price from $0.0005 to $0.001, and of course Binance Coin that also almost doubled in price from $5.50 to $9.64 at the time of writing.
Why is BNB doing so well?
The first reason that comes to mind is Binance’s Launchpad. After having an extremely hyped BitTorrent token sale on their platform that sold out in roughly 14 seconds, Binance is responsible for most of the hype in the cryptocurrency world. Not only does it dominate the trading volume with over $600 million traded in the past 24 hours, it also has an extremely good reputation. Changpeng Zhao is extremely loved in the crypto community partly due to his outstanding communication when it comes to any exchange problems.
With the recent positive momentum $BNB reached the top 10 coins based on market cap. It’s roughly $200m ahead of Bitcoin SV which lost over 30% in value since the beginning of the year.
Technicals
One interesting pattern to notice is the correlation between the increase in volume and increase in price for $BNB. As Walter Wyckoff highlights this phenomenon on twitter:
$BNB chart clearly shows how volume and price move when there are many buyers stepping in and demand>supply, aka bullish reversal. But maybe volume means nothing idk pic.twitter.com/2HEwpgixOS
— Levi Alterman (@levi_alterman) February 11, 2019
We can only assume that if the volume keeps rising then the price will also. Looking at the next event which should spark an increase in volume for BNB is the launch of Fetch.AI on the Binance Launchpad. The launch is scheduled for Feb 25th which is 2 weeks away.
According to the project specification, Fetch.AI aims to bring together machine learning, AI and blockchain to create an economic internet. It’s a complicated project that’s hard to explain in a single sentence. If you are interested in looking into it, you can read the whitepaper.
Binance’s token launch platform is definitely a key player in the success of $BNB’s price, as each token that is launched on the platform accepts $BNB by default. This crease demand for Binance Coin which in turn increases the price.
It almost looks like the Binance Launchpad is serving as a replacement for ICOs for 2019. While STOs are replacing traditional Initial Coin Offerings, Binance launchpad allows for a much more widely accessible platform to raise funding for a project. Furthermore, the projects are vetted by the Binance team which dramatically reduces the chances of scams.
At the time of writing $BNB is trading at $9.60, up almost 3% in the past 24 hours. Current trading volume is at $141m coming mostly from Binance as expected.
Originally Appeared on The Merkle Hash
Disclaimer: The author may have a stake in the cryptocurrencies discussed in the article. This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
Image(s): Shutterstock.com
