The CEO of Binance, Changpeng Zhao, is reporting on social media the record reached by the price of Binance Coin (BNB), which touched $39.60, beating the previous record of a year ago:
— CZ Binance (@cz_binance) December 29, 2020
In fact, when checking the chart of the token’s price trend, we can see that since mid-March, the period of the crypto crash, when it touched the low of $9, it has steadily recovered until reaching the current levels above the average $30.
The price path of Binance Coin (BNB)
It is worth noting that this token was launched in the summer of 2017 through an ICO (Initial Coin Offering) and at the time the price was set at 1 ETH for 2700 BNB and 1 BTC for 20 thousand BNB.
It was an investment that in today’s day and age has yielded more than the crypto invested considering that the BTC invested in BNB is worth an impressive $780k.
When the token was launched, BNB was a traditional ERC-20 token on the Ethereum blockchain, with a total supply of 200 million tokens. The supply is expected to halve over time, thanks to burning operations that continue consistently.
- BNB is a utility token as its main function is to:
- get discounts on trading on the platform itself,
- pay fees using BNB instead of the crypto we are exchanging or withdrawing.
It is worth noting that with the advent of the Binance Smart Chain, most of the projects that are born and developed in the field of decentralized finance (DeFi), such as protocols for the exchange of tokens, have as collateral BNB as the main token and this has pushed the demand for Binance Coin on these protocols.
However, it should be noted that also other crypto assets are in positive and are scoring impressive numbers and also ATHs in 2020. This might just be a transitional phase before all cryptocurrencies start going down and cause users to lose enthusiasm and money.