The altcoin price for the first time reached $ 638, since the beginning of the year it has grown almost 17 times. Experts explained what caused such dynamics, and why the asset will continue to renew highs
Today, April 12, the value of the Binance Coin token reached an all-time high of $ 638. As of 02:30 PM Moscow time, the cryptocurrency is trading at $ 580. Over the past week, the token has risen in price by 67% (from $ 338). Monthly growth amounted to 115%, since the beginning of the year the asset has strengthened almost 17 times.
Binance Coin is a Binance crypto exchange token that is used to pay trading fees, as well as exchange offerings (IEOs) on the Binance Launchpad.
Several factors affect the Binance Coin rate at once, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, one of them is the growing popularity of cryptocurrencies among a wide range of investors. New players prefer to trade on the most stable and reliable platforms, the expert explained.
Not a bubble
The Binance Smart Chain (BSC) network is gaining increasing recognition as an alternative to the Ehereum blockchain, notes Janis Kivkulis, lead strategist at EXANTE. According to him, the BNB token is actively used in trading on the platform of the same name and is gradually increasing liquidity. The expert does not believe that the growth of Binance Coin can be called a bubble, since the token has shown consistently rising in price for a long time.
Nikita Soshnikov also believes that the concept of a “bubble” is not applicable in this situation. He explained that now the market is starting to develop a classic situation of fear of loss of profits, when new investors buy tokens in the hope of earning money. At the same time, market participants who have already entered the asset fix their profits.
In the near future, Binance Coin will roll back and will be forced to go through the consolidation process after such a rapid growth impulse, according to Janis Kivkulis. He does not exclude the possibility that a pullback of hundreds of dollars may occur, but this will only strengthen the desire of investors to enter the asset at a discount. Also, the leading strategist at EXANTE predicts that if the current conditions persist in the medium term, the Binance crypto exchange token will rise in price to $ 1,000. From current levels of about $ 580, this means an increase of another 72%.
“Cryptocurrency is just entering the mass market. The coin has a chance to reach $ 1,000 this year. But on this way, she will face periods of correction, during which the rate will drop greatly, ”added the director of the cryptocurrency exchange service Alfacash.
Andrey Podolyan, CEO of the Cryptorg.Exchange crypto exchange, shares the same opinion. According to him, now the price of $ 1,000 is seen as a quite tangible target for Binance Coin.
Competition with Ethereum
Ethereum developers need to scale the project and switch to the Proof-of-Stake consensus, otherwise Binance Coin and other tokens will have a chance to get ahead of the altcoin, notes Janis Kivkulis.
“So far, the capitalization gap between projects is quite large, but BNB really has every chance to compete with Ethereum, given such a deafening success story,” he explains.
To overtake Ethereum in capitalization, the Binance crypto exchange token must rise in price to $ 1500, while Ethereum must stop growing and developing, says Andrey Podolyan. This scenario is unlikely, since Ethereum continues to move on, and in the near future it may rise in price to $ 3-3.5 thousand, the expert is sure. Now altcoin is trading at $ 2.13 thousand. Over the past week, its quotes have increased by 20%.