The seventh-largest crypto by market capitalization was up by circa 17 percent, trading at $29.07 as of 1023 GMT, Tuesday. At the same time, other leading cryptocurrencies, including Bitcoin, Ethereum, and XRP, were trading 10-20 percent below zero.
At its month-to-date high, Binance Coin was trading at $34.05, up by almost 47.04 percent. The cryptocurrency’s surprising upside move came amidst growing demand for Binance Chain. The blockchain software system reportedly onboarded more users as its top rival, Ethereum, suffered from lethargic transaction times, high fees, and high transaction failures.
Binance Coin serves as the de-facto settlement token inside the Binance ecosystem, which covers its regulated trading platform, decentralized exchange, as well as its crowdfunding platform, and native blockchain. As the ecosystem attracts more users, it also enables further demand for BNB tokens.
“The flippening is real, except it’s not with BTC and ETH,” an observer commented. “It’s with ETH and BNB. No failed transactions, transactions confirm in seconds, basically no fees, BNB is simply providing a far superior trading experience.”
No failed transactions, transactions confirm in seconds, basically no fees, BSC is simply providing a far superior trading experience.
There’s a reason it looks like this on the weekly IMO. pic.twitter.com/d2JQKVAow4
— Chase_NL (@Chase_NL) September 13, 2020
Binance Coin carries a long history of stable uptrends with minor, hiccup-like downside corrections. The cryptocurrency backs one of the world’s leading cryptocurrency conglomerate, Binance, that leaves no doubt about its growth as a utility token.
That somewhat puts Binance Coin in the category of investment-worthy assets. Meanwhile, given the regulatory and other speculative risks associated with the cryptocurrency firms, Binance Coin also comes with risks of showing aberrant price behaviors.
Binance Coin Technical Outlook
Technically, BNBUSD stands tall like the rest of the top cryptocurrencies, at least for the year 2020.
A string of dovish policies announced by central banks around the globe has allowed investors to look beyond cash and government bonds for better yields. While Bitcoin remains the top choice for those who want to invest in cryptocurrencies, altcoins like BNB serves as an alternative to those with higher risk appetites.
BNB/USD eyes an extended move towards $40. Source: TradingView.com
As the global policies remain intact, BNBUSD eyes an extended move upward. The pair is now testing $32 as its interim resistance as it maintains a strong footing near $26.91. If it manages to hold above the support level, then traders might attempt to take the price up towards $38.95.
The target is very close to $40, a psychological level of interest. Meanwhile, slipping below $26.91 could have traders short BNBUSD with an interim downside target near $23.