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Binance Coin (BNB) surpasses Tether in third place among cryptocurrencies

Binance Coin in the last few days has experienced a real surge in prices that has caused the cryptocurrency token to climb the top ten of assets by market capitalization, reaching the number three spot and surpassing Tether.

In short, until now, February has been a record month for Binance Coin and, one week after its end, everything suggests that the second month of 2021 will be difficult to beat.

The rally is in fact continuing, bringing the price of the BNB token to a maximum of over $ 300 per token. With 154 million BNB in ​​circulation, this resulted in a market cap of $ 48 billion, nearly $ 15 billion ahead of the next closest crypto asset - the stablecoin. Tether.

Of course, Tether's market cap is based solely on supply, as its price is tied to the dollar and does not fluctuate significantly. Tether has held the number three spot on this special ranking for some time, in turn surpassing XRP while Ripple was going through the notorious crisis due to the dispute with the SEC.

Binance Coin, however, was barely in the top ten before this month, and is now only behind Ethereum e Bitcoin in terms of total capital.

As for why the token is performing so well, analysts agree that it is a sign of growing demand for the market. cryptocurrency as a whole. The take-off of Bitcoin helped push the altcoins back into an uptrend, which is now earning investors once again.

We also remember that Binance was theexchange where many investors have enjoyed quite a fortune during the last big altcoin season, which also saw Binance Coin jump to the top of investor interests.

And because the exchange is so active and relies heavily on the token to support its massive and ever-expanding ecosystem, Binance Coin is one of the most valuable cryptocurrency tokens on the market. Only now is the market realizing this value, and the price is recovering accordingly.

Binance Coin is in fact the native token of Binance, the cryptocurrency of the exchange through which, for example, it is possible to carry out numerous operations on its platform at more favorable conditions than those that could be obtained using other currencies.

Now, it is reasonable to imagine that the boom in transactions that is taking place on Binance and other exchanges may end up carrying more BNB into its ecosystem, considering that more and more investors will want to grab the units of this token to try to capitalize on the its holdings within Binance.

It is clear that all of this may not be enough to steer BNB towards a bright future. In other words, it will be necessary to try to understand what the trend of the overall demand for cryptocurrencies will be and, based on this evolution, to compare whether BNB's luck will continue to be guaranteed with similar performances, or not.

In short, there would be no particular surprises if, in a period of weakening of the demand for cryptocurrencies and of interest for Bitcoin and - above all - for altcoins, the value of Binance Coin should also undergo a decrease as a result, thus creating a discount correlation between the evolution of the overall demand for digital currencies on the one hand, and the demand for Binance Coin on the other, due to the need to be able to support such requests with the possibility of using BNB within the exchange platform.

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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