TL;DR Breakdown
- BNB is getting closer to its all-time high, as prices have spiked by over 25% in a week.
- The recent bull run of BNB was driven by the new $1 billion funding announced by Binance to improve its Smart Chain.
- Binance is taking continuous initiatives to improve the entire blockchain industry,
Binance Coin (BNB), the cryptocurrency issued by the Binance exchange has soared over 25% in the last 7 days. The altcoin is trending just 3% below its current all-time high of $686.31, which was set earlier in May this year.
In terms of market-cap, BNB is currently the 3rd largest cryptocurrency in the industry, sitting below Ethereum. But what’s causing this sudden spike in BNB price?
Binance Coin’s growth was well projected by Cryptopolitan analysts and other experts in the industry. In October, Binance announced a new $1 billion fund to enhance DeFi activities across the Binance Smart Chain (BSC), as well as the wider blockchain industry. Binance, the largest crypto exchange by trading volume, launched this new fund with an aim of bringing 1 billion new crypto users into the industry.
Within 24 hours of the announcement, BNB price climbed close to 20%, and it has since continued the bull run. The new $1 billion funds brought immense confidence among the traders and increased investments into BNB.
Will Binance Coin continue to grow?
Binance has been working reluctantly to enhance the BSC. The popular crypto exchange wants to be at the heart of every blockchain activity in the industry. The company has launched the BSC Gamify Expo in recent months to promote enhanced participation in blockchain-based games. Last month, the company introduced metaverse games to feed into the recent hype of the metaverse.
They also launched a new Evolution Protocol, BEP-95 to support real-time burning on the Binance Smart Chain. As Binance stated, this will significantly reduce gas fees on the BSC, and improve the crypto burn ratio.
All of these combined efforts to enhance the entire blockchain industry has fueled the recent growth of BNB. If Binance continues on its path to improve the BSC and attract more new investors, BNB will continue to grow in the long-term setting new all-time highs along the way. For now, Binance Coin is slowly edging towards the $700 mark.
BNB is currently trading at $662.20.
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