If You Invested $1,000 In Binance Coin One Year Ago, Here’s How Much You’d Have Now – Benzinga

Investors who have owned stocks in the past year have generally experienced some big gains. But there is no question some big-name cryptocurrencies have left the stock market in the dust.

Binance Coin’s Big Run: One cryptocurrency that has been a great investment in the past year has been the world’s third most valuable crypto, Binance Coin (CRYPTO:$BNB).

Binance Coin has been an exceptional investment going all the way back to its launch in July 2017. But, after climbing as high as $37.35 in June 2019, Binance Coin prices spent much of the next year trading back under $20.

The biggest catalyst for Binance Coin prices in 2021 has been the rise in popularity of the Binance Smart Chain (BSC), which is considered a competitor with the Ethereum (CRYPTO:$ETH) blockchain.

Binance Coin is a “discount token,” meaning users can get fee discounts on various Binance trading platforms if they pay in BNB.

At the beginning of 2020, Binance Coin was trading at $13.73. When March arrived, the cryptocurrency had risen to $19.57 as news of the virus spreading in China prompted concerns about a U.S. pandemic.

On March 13, 2020, Binance Coin plummeted to its pandemic low of $6.96 as global stock markets tanked. The good news for Binance Coin investors is that the crypto bounced off that level as the stock market began to stabilize shortly thereafter and the government started printing money.

By November, Binance Coin was back up above $28.

Binance Coin In 2021, Beyond: On Jan. 19, 2021, influential Tesla Inc (NASDAQ:TSLA) CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted “In retrospect, it was inevitable.” Musk’s tweet sent the entire cryptocurrency market soaring, including Binance Coin.

Binance Coin may have also benefited indirectly from the Coinbase Global Inc (NASDAQ:COIN) IPO, which has fueled speculation Binance could potentially go public in the future.

Binance Coin ultimately hit a new all-time high of $690.93 in May, but has since pulled back significantly. Today, Binance Coin is trading back down at $346.37.

Still, Binance Coin investors who bought one year ago and held on have generated huge returns on their investments. In fact, $1,000 in Binance Coin bought on June 8, 2020, would be worth about $20,030 today.

Looking ahead, it’s impossible to value cryptocurrencies like Binance Coin because they produce no cash flow, pay no dividend or interest and are still used for only a tiny fraction of global financial transactions. However, up to this point, Binance Coin has made for a spectacular speculative investment.

But until the extreme volatility in the Binance Coin market dies down, it will likely have a difficult time winning over investors looking for a safe, secure alternative to cash that won’t keep them up at night.

(Photo: Binance)