Binance Coin price (BNB) soared to an all-time high as demand for the digital currency continued to rise. Other altcoins like Cardano, Chainlink, and Polkadot also continued soaring, with Bitcoin being the main laggard.
The background: Binance Coin was launched by Binance, a cryptocurrency exchange, in 2017. The company’s goal was to have a native currency that enabled customers to pay fees on the platform. Initially, it was built on the Ethereum blockchain, before the company moved it to the Binance Chain network. To achieve this, the company raised more than $15 million in an ICO.
Since then, the Binance Coin price has been in a steady upward trend. It has risen by more than 25% this year and by 160% in the past 12 months. As a result, its market cap has risen to more than $6 billion, making it the 11th-biggest digital currency in the world.
Binance Coin Rally: The BNB price rally has happened for several reasons. First, Binance is one of the most recognizable names in the cryptocurrency industry. As such, many investors believe that it is a genuine product.
Second, there have been supply challenges recently because of what is known as a token burst. This happens when there is a permanent removal of coins. Third, the Binance Chain has launched smart contracts that will enable the development of DeFi products. In fact, the cross-chain assets in the chain have moved to more than $250 million.
Binance Coin Technical Analysis
The Binance Coin price is trading at $45.28, which is close its all-time high. The price remains above the 25-day and 15-day exponential moving averages (EMA) while the momentum indicator is above the neutral level of 0. Therefore, in my view, I believe that the currency will continue rising as bulls start targeting the psychological level of $50.
BNB Price Chart