The Binance coin has grown significantly in recent times. Nearly 20% within 24 hours of the market reaction to the news that Binance announced a $1 billion fund to increase activity on the Binance Smart Chain (BSC) and the broader blockchain. The industry has grown.
Digital currency trading on ticker BNB rose to $467.89 today, according to Messari.
At the time, it was up more than 19% from $392.44 the previous day, according to additional data from Messari.
After that sharp rise in price, Binance Coin is down slightly, trading around $457.24 at the time of writing.
[Ed’s note: Investing in crypto coins or tokens is highly speculative and the market is largely unregulated. Anyone considering this should be prepared to lose their entire investment.]
When asked about the factors that contributed to the recent rise in prices, analysts said the news from the BSC fund was the main reason.
“The announcement of the $1 billion growth fund gave the rise in the price of the Binance coin a significant boost,” said Scott Melker, crypto investor and analyst who hosts the Wolf of All Streets podcast.
“BNB is up on selling across markets, with almost all coins depreciating against Bitcoin and the dollar. That is an impressive move based on fundamental developments.”
Nick Spanos, co-founder of Zap Protocol, also emphasized the importance of the $1 billion fund.
“News of the $1 billion growth fund Binance has made investors even more optimistic about Binance Coin, and demand for BNB has soared.”
“That’s because the Growth Fund is the largest of its kind and while being blockchain agnostic, most of the money allocated will likely be used to upgrade Binance Smart Chain (BSC) accounts. That’s what Spanos said. ..
BNB is primarily used for Binance transactions and to pay transaction fees, and due to the high percentage of transactions made through Binance, the fees are low and therefore created on the Binance Smart Chain, so this growth fund is a good sign. for the Future of Binance. Coin.”
Like Mercer, he said that the price of Binance Coin is moving in the opposite direction of many cryptocurrencies.
“Some might argue that this news about growth funds is not the only reason for the recent rise in BNB prices,” said Spanos.
For example, investors might argue that they can buy more BNB to better equip them to take advantage of the expected fourth-quarter gains. I can do that.”
“But many coins and tokens, including Bitcoin and Ethereum, have dropped in the last 24 hours, so I don’t buy into this discussion and attribute the recent spike in BNB prices to the aforementioned Growth Fund news. I will do. ”
Andrew Rossow, an internet and technology attorney, also joined.
“Today’s announcement sends a strong message that Binance has provided excessive funds for further exploration and fragmentation of the metaverse and virtual reality. But not so much today. . ”
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ethereum, EOS and Sol.