What Is Going On With BNB
This blog post will cover:
- Why the BNB price has decreased
- What to expect in the future?
- What are the prospects for the BNB coin?
Why the BNB price has decreased
Over the past week, the BNB’s price fell by 26.8%. The interest of BNB in total market capitalization added 0.4%, to 3.85%. There are several reasons for the decline:
- The first and most important is the situation with the growth of the US retail price index and the rise of the Fed rate. At the end of the last week, another update on US inflation data appeared: +8.6%. This is a record since 1981. The US Stock Market has officially entered a downward trend while putting intense pressure on the crypto market. High inflation forces the US financial regulator to tighten up the monetary policy by raising the rate. This measure leads to a reduction of liquidity in the markets.Cryptocurrencies, as the most risky assets, respond to the situation very acutely. Crypto has not yet found itself in the global economy.
- The next reason. The United States Securities and Exchange Commission (SEC) investigated possible violations of US law by the Binance Exchange during the BNB token ICO in July 2017. This was reported on June 6 by Bloomberg with reference to sources. According to Bloomberg, the regulator knows at least one US citizen who took part in the purchase of BNB during the initial sale. This fact allows the SEC to check the BNB ICO for possible violations of US securities law.
What to expect in the future?
Despite the downward market tendencies and a serious decline of the total capitalization of the crypto market, the BNB token remains strong and fundamental. The coin has firmly established itself in the TOP-5 ranking of CoinMarketCap along with BTC and ETH. BNB is not just a token to reduce trading fees for Binance traders, but also a fuel for the BSC and BC networks. BNB is also appreciated by users who participate in Launchpad. A large number of assets are traded in pairs with BNB. Every cryptocurrency listed on the Binance crypto exchange can be purchased with the BNB coin. There is also the burning mechanism used to reduce the total coin supply to 100,000,000 BNB. The mechanism automatically burns coins every quarter depending on the number of blocks created in the BSC. This mechanism creates a deficit that directly affects the price of the cryptocurrency.
Binance’s influence continues to grow. In May 2022, Binance was licensed as a digital asset provider in France and Italy.
The company also expanded its current license in Bahrain, and will soon launch a regulated cryptocurrency platform in the Middle East.
In early May, it was alsoreported that Binance had given Elon Musk $500 million to fund a deal of acquiring Twitter:
What are the prospects for the BNB coin?
As the crypto market begins to recover from a massive fall amid economic problems, cryptocurrency will again show growth faster than fiat currencies. The growth and success of the crypto market will trigger the return of major players and will attract even more new users affected by the crisis. Binance, as the dominant brand of both centralized and decentralized cryptocurrency spheres, will only expand its influence. As the BNB coin is inextricably linked to the success of the exchange, its value will continue to rise and set new price records.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.