Since January, the crypto market has been on a downward spiral, with bitcoin falling from over $15k, to its current price level of sub-$7000. However, there is one coin that has weathered this storm quite well, and seems to making gains by the day, and that’s Binance coin (BNB). In the last 5 months, Binance coin has gained by more than 100%, to its current price level of $15. This means that had you put $10,000 in Binance coin in February, you would be sitting pretty on a $10,000 profit at today’s prices. A similar amount put in Bitcoin (BTC) or any other crypto out there would have lost over 60% of its value. Therefore, on a comparative basis, Binance coin is the best cryptos to hold in a downtrend. So what makes Binance coin tick, in a market that is increasingly showing signs of weakness?
Well, this is partly because Binance coin is backed by Binance exchange, one of the strongest exchanges in the crypto market. Ever since it launched, Binance exchange has been on a steady rise, and is now arguably the largest exchange on the planet. This has played a major role in giving Binance coin (BNB) an intrinsic value that is not there in most other cryptos in the market today. In essence, owning Binance coin (BNB) is the same as owning the shares of a fast growing global corporation. It is almost given for such an asset to grow in value. As long as Binance exchange continues to grow in popularity, the value of Binance coin will continue to grow. Its future growth will also be accelerated by the clear weakness that is prevailing in the rest of the crypto market at the moment.
Another factor that is pushing up the value of Binance coin (BNB) is the fact that its supply is declining relative to its long-term demand. That’s because Binance does coin burns for Binance coin (BNB) every quarter. This means that in the long-run, demand will be chasing a lower number of coins in the market, and this will continue to drive up the value of Binance coin in the market.
The above factors have made Binance coin (BNB) one of the best assets to hold in today’s bear market. Its value is not correlated to the rest of the crypto market.
In essence, for someone looking to hold value in this prolonged bear market, holding Binance coin (BNB) would be a good decision. As more people pivot towards it as a store of value, Binance coin could easily break above $20 within a few weeks. Besides, based on the reputation it has built in the market as a safe haven crypto, its value could soar once the rest of the market breaks upwards. That’s because investors will have the expectation that it could perform way better than the rest of the market. This is one coin that any investor should seriously put into consideration.