Throughout the past week, Binance Coin BNB/USD rebounded from below $240 to trade near the $400 level. This is a direct response to Binance’s new features that enhance the overall functionality of the exchange and offer users various ways through which they can use the BNB token to earn more crypto.
Despite recent momentum, BNB is still far removed from the $600 level that was seen in late April. But the case can be made for BNB to recover and at the very least retest the $500 level in the near-term and ultimately trade above its all-time highs.
How Bridge V3 sets the tone for BNB
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When we look at its history, on April 21 the value went up to $603 surrounding the interest in the Launchpad projects. This is the same time that the Launchpad project “FC Barcelona Fan Token” ended, where over 5 million BNB were committed with over 62 thousand participants.
Binance released Bridge V3 on April 25. The bridge is a project that aims to increase interoperability between different blockchains. It takes things one step further in broadening the Binance Bridge’s influence outside of the Binance Smart Chain and opens up a whole new cross-chain DeFi ecosystem for the entirety of the community.
However, alongside those projects, you have the Binance Launchpool, which lets BNB users use their tokens to farm new ones for free. There have been 18 projects thus far, with ATA, a decentralized service protocol that provides a privacy middleware layer for dApps being the latest one of them, with 27 more days left to farm it.
The previous project, TLM, a simulated economy where players compete with NFTs, ended on May 7.
Heading into the back half of 2020, the recent Launchpad projects should help lift BNB because it incentivizes BNB holders to fund the development of crypto start-ups, which will over time generate a lot more use-cases for the Binance exchange and attract new users, lifting the overall value even higher.
Should you buy BNB?
BNB was trading at the $375 level on Friday and this is a good entry point to buy BNB and sit on it. Until a new project, update, or announcement from the company shines some light on it again, such as introducing new crypto listings within the month, hosting events, which they do every month, it could be a wise point in time to potentially invest in.
Aside from new projects, Binance continues to separate itself from its peers by listening to what customers want. For example, Binance listed on Friday NuCypher (NU) and opened trading for NU/BTC, NU/BNB, NU/BUSD, and NU/USDT trading pairs.
On June 6, Binance will open trading for XVG/USDT, ATM/BUSD, CELR/BUSD, FTM/BUSD, KAVA/BUSD, RLC/BUSD, THETA/BUSD, WIN/BUSD, XEM/BUSD, and ZEN/BUSD trading pairs, which might drive the price up yet again.
The exchange constantly introduces new trading pairs and brings new technologies to the table that can cause spikes in terms of hype, which should inevitably drive the price higher.
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