Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
According to CZ, numerous reasons contributed to the BNB rally including the increase in the number of projects on the Binance Smart Chain (BSC).
Binance has taken a very good step to burn a portion of its assets in circulation to contribute to the recent rally after it recorded massive growth on its Binance Smart Chain (BSC). According to their official announcement, the 15th quarterly BNB burn for the period between January and March saw the company burning a total of 1,099,888 BNB which is equivalent to $595,314,380.
These periodic BNB burns have an important effect on the price as the massive increase of its market cap may have an accelerated reflection on its price. This event means the total supply of the digital asset has decreased from 170,532,825 BNB to 169,432,937 BNB.
It is important to note that this token burn is the highest ever in the cryptosystem in terms of the US equivalent. During the same period (January-March), Binance recorded considerable growth with its trade volume rising by 260% and its users rising by 346%. During this same period, its price has surged by $38 to $638.
CZ Links BNB Rally to Binance Smart (BSC) Growth and Other Factors
According to Changpeng Zhao (CZ), the CEO of Binance, people mostly ask him the reason for the price surge. In his understanding, numerous reasons contributed to this including the increase of projects such as the Defi on the Binance Smart Chain (BSC), the BUIDLing by the community as well as the team in close to 4 years, the effect of the Coinbase listing, the general growth of the cryptocurrency industry and the support and contribution of their cryptocurrency ecosystem.
Though all the above factors contributed to the success story of BNB, he does not know the exact contribution of each. CZ paid special attention to the Binance Smart Chain (BSC) after how far it has grown in the last quarter. The Binance Smart Chain recorded daily transactions which are 300% more than that of the Ethereum all-time high. There were $4.9 million daily transactions on the chain. Over 450 projects have so far been built on the Binance Smart Chain (BSC) and a record of 68 million total unique address counts in the last eight (8) months.
Over the past few months, Binance has come up with interesting innovations such as the Binance Card that allows users to make crypto payment directly from the card, thanks to the over 60 million merchants across the world. Also, they introduced Binance Pay which made it possible for users to pay, send and receive cryptocurrencies across the world. Binance Lite was also introduced to provide users with a friendly interface to make trading easier at a smaller fee.
How far Binance can go in the future is unknown, but the team is just focused on expanding their business and adding more innovations for the satisfaction of users.