Binance Coin (BNB) has, after spending a week in retracement mode, finally made a move towards the upside. So, what caused BNB to surge over 20% on the day, and should you consider investing in BNB now?
Fundamental analysis: Binance Smart Chain performance pushes BNB up
With Binance Smart Chain (BSC) becoming increasingly popular as a DeFi-hosting platform in recent weeks, BNB (its underlying token) has experienced several massive jumps in price. Since any performance of the BSC is correlated with how people perceive and value BNB, it’s safe to say that Binance Coin’s fundamentals are improving every single day.
Changpeng Zhao, the CEO of Binance, posted a tweet that shows BSC’s transaction volume. He pointed out that BSC is currently sustaining 2x the daily transaction volume of Ethereum. On the other hand, he stated that the BNB token is not even close to being as valued as Ether:
#BSC is sustaining roughly 2x daily tx volumes compared to #ETH, while #BNB is at 1/5th of the total market cap of #ETH. pic.twitter.com/0bZvopOM6o
— CZ 🔶 Binance (@cz_binance) February 26, 2021
However, a good counterpoint to CZ’s statement was made, which said that one of the reasons BNB isn’t as valued is its availability. Binance Coin is only available on the Binance exchange, while Ether is available on every major exchange.
BNB posted week-over-week losses of 7.35%, outperforming both BTC‘s week-over-week loss of 9.08% and ETH‘s 12.51% loss. Binance Coin is currently the fourth-largest cryptocurrency by market cap, boasting a value of $37.88 billion.
At the time of writing, BNB is trading for $245, which represents a price
