Binance Coin, or BNB, surpassed its two rivals, Bitcoin and Ether, among the three largest digital assets by market capitalization. According to Arcane Research, the coin — created by crypto exchange Binance Holdings Ltd. — increased about 1,300 percent in 2021. In comparison, market leader Bitcoin surged by 65 percent, while the second-largest cryptocurrency, Ether, increased by 408 percent.
On Binance, the world’s largest crypto exchange by volume, BNB is frequently utilized. Binance Smart Chain, a blockchain platform that allows smart contracts for use in Decentralized Finance (DeFi) and other applications, uses it as its native currency. According to Arcane Research, the BNB coin has benefited from BSC’s growing popularity as a rival to the Ethereum network.
Altcoins made significant increases in 2021, owing to a surge in investor interest in digital assets and the growth of the crypto industry. For example, the returns of Solana and Fantom, currencies linked to other blockchain systems that enable smart contracts, outperformed Binance Coin’s.
In a report, the research group noted that while Bitcoin exhibited gains in 2021, they’ve witnessed a continual flood of wealth seeping down into altcoins. The largest momentum, according to the firm’s experts, would be seen in tokens associated to the metaverse and GameFi, as well as Ethereum killers.
During the month of October, the Binance coin quadrupled in value, reaching $670. The cryptocurrency has declined in value over the previous two months, but it has built a support level around $530, which has held for more than a month. So it appears like BNB is waiting for the crypto market’s attitude to change before resuming its climb.
Binance has already gained 1,300 percent this year, even if it does not become bullish by the end of the year. The $750,000 fine imposed by Turkish authorities on Binance earlier this month has had no impact on the price. As a result, BNB should be optimistic in the first half of next year.