Binance Coin (BNB) has continued its remarkable price rally today, surging by a massive 54% to hit a new all-time high of $283 at the time of writing. The BNB token has so far skyrocketed 112% over the past week and has flipped Tether (USDT) to become the third-largest cryptocurrency with a market cap of $40 billion.
The CEO of Binance, Changpeng Zhao, also tweeted about the token’s impressive price rally earlier today. He pointed that growing faster than Bitcoin has always been one goal the team is working towards.
“Otherwise, we should just buy BTC and not work.”
However, Changpeng Zhao voiced a cautious note, stating that despite its potential for higher growth, Binance Coin is still a small market cap coin; hence, it has more inherent risks than the leading cryptocurrency – Bitcoin.
Binance Coin price benefits from DeFi
Since Binance Coin started rallying a few weeks ago, many crypto enthusiasts have tried to figure out the reasons behind the surge. Many popular crypto-proponents have attributed BNB’s price hike to Binance Smart Chain (BSC), as the platform has recorded a spike in transactions lately.
Due to record-high gas fees on the Ethereum network, many users have also found a suitable alternative for transactions on the Binance Smart Chain. The network recently recorded over two times the volume of transactions on the Ethereum network. Earlier today, Binance suspended deposits and withdrawals on Binance Smart Chain for an hour, citing maintenance reasons. Notwithstanding, projects on Binance Smart Chain are doing well so far, with Pancakeswap being the prime example.
According to CoinGecko, Pancakeswap’s volumes have risen by over 2,800% since the beginning of the year. Binance’s listing of the DEX platform, DODO, on its launch_pool has also contributed to the BNB’s price surge. As an incentive, users can earn DODO tokens by staking BNB, BETH (staked ETH), and BUSD into three liquidity pools. And within the next fourteen days, participants will earn a share of 1 million DODO, which currently trades around $5.30.
But not everyone is convinced that Binance Smart Chain will continue on its current path. On the contrary, others like DeFi Alliance, Qiao Wang, believe that BSC is not getting enough attention, considering that “Legit teams are building on it.”