Binance Coin (BNB) has become the seventh-largest cryptocurrency by market capitalization after stellar performance this week.
Climbing the Ranks
Binance Coin (BNB) soared 25%, hitting an all-time high of $75.50 according to data from CoinGecko.
The exchange token is now the seventh largest coin by market capitalization, with its value sitting at $10.9 billion at press time. This puts it just ahead of the previous seventh place holder, Litecoin (LTC), at $10.7 billion.
The rally sees BNB’s 24 hour trading volume hit a massive $2.88 billion, almost double the fifth-place holder, Polkadot (DOT), at $1.47 billion.
The exchange coin had an impressive stretch this week, entering at just over $44. This gives BNB a week-to-date return of just under +70%, one of the best weeks in its history.
Launched in 2017, BNB is a token created by cryptocurrency exchange Binance. Binance is the largest exchange in the world by trading volume.
The Binance Universe
BNB serves the company’s ecosystem. Users can use it to pay trading fees, take part in Binance Launchpad token sales and pay at accepting merchants.
The token also serves as the power behind the company’s own decentralized exchange (DEX), Binance DEX. Users can also stake BNB using Binance Launchpool to earn rewards.
Take just one look at the company and it’s difficult to ignore the pace of product development. Just this week, the company launched a payments service to rival the likes of PayPal.
The service, called Binance Pay, allows “borderless and secure cryptocurrency payment technology” according to the company. Made for mobile devices, the application can be linked to Binance Card and includes an in-built cryptocurrency wallet.
Demand for CEXs
As the cryptocurrency market heats up, the demand for centralized exchanges is at an all-time high.
This has caused some problems for several cryptocurrency exchanges. When Bitcoin first climbed to the $20,000 level, both Coinbase and Binance suffered brief outages as they struggled to cope with demand.
Moreover, some exchanges even tried to make signing up more difficult to reduce the number of new users using their sites.
However, the exchange is also taking the increased demand in its stride. With each new service, it seeks to create a one-stop shop for all things crypto.
If it continues at the current pace, it may well be able to exchange the world.
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