Binance coin recently posted notable gains, climbing nearly 20% in less than 24 hours after markets reacted to news that Binance had announced a $1 billion fund to help spur greater activity both on its Binance Smart Chain (BSC) and in the wider blockchain industry.
The digital currency, which trades using the ticker symbol BNB, soared to $467.89 early in the day, according to Messari Data.
At that point, it was up more than 19% from $392.44 the previous day, according to additional numbers from Messari.
Following these strong price increases, binance coin pulled back somewhat and was trading at around $457.24 at the time of this writing.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When asked what factors drove the latest gains, analysts pointed to BSC fund news as the main cause.
“The announcement of the billion-dollar growth fund was a clear catalyst for Binance Coin’s price rally,” said Scott Melker, a crypto investor and analyst who is the host of The Street Wolf Podcast.
“BNB rose in the face of a market-wide selloff, seeing nearly all coins lose value against Bitcoin and the dollar. It was an impressive decision based on a fundamental development.
Nick Spanos, co-founder of Zap Protocolalso highlighted the importance of this billion dollar fund.
“The news of Binance’s $1 billion growth fund has made investors even more bullish on Binance Coin and we’ve seen a surge in demand for BNB.”
“This is because the growth fund is the largest of its kind and, although it is blockchain-agnostic, it is likely that most of the allocated money will be spent on raising the profile of Binance Smart. Chain (BSC),” Spanos said. .
“As BNB is primarily used to pay transaction and trading fees on the Binance exchange, and since a high percentage of trades executed through Binance are performed on the Binance Smart Chain due to lower fees, this growth fund is of bodes well for the future of Binance. Coin.”
Like Melker, he noted that the price of the binance coin was going in the opposite direction of many digital currencies.
“Some would argue that news of this growth fund is not solely responsible for the recent surge in BNB’s price,” Spanos said.
“For example, you could argue that investors can simply buy more BNB to put them in a better position to capitalize on the predicted Q4 crypto bull run.”
“However, as many coins and tokens, including Bitcoin and Ethereum, have been declining over the past 24 hours, I don’t buy this argument and would only attribute the recent BNB price surge to news from the fund. aforementioned growth.”
Andrew Rossow, an internet and technology lawyer, also spoke.
“Today’s announcement sends a powerful message that Binance is setting aside such exorbitant funds to further explore and tear apart the metaverse and virtual reality – something that would have been considered ‘laughable’ and ‘insane’ a while ago. is 5 years old, when we talk about consumer credit .However, today – not so much.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS, and sol.