To date, Binance Coin has rallied 900%, which makes the token’s $64 billion market cap larger than Santander, the Bank of Montreal and UBS.
2021 has been an impressive year for Binance Coin (BNB), which so far has rallied by more than 900%.
One of the primary drivers of BNB’s growth was continued congestion on the Ethereum network. As this struggle carried on, Binance Smart Chain (BSC) emerged as an alternative, meeting the rapidly growing decentralized finance (DeFi) sector’s demands.
As BNB reached a $64 billion market capitalization, it has surpassed traditional banks, including Santander, the Bank of Montreal, and UBS. Meanwhile, some analysts point to the estimated value and impact of Coinbase’s upcoming direct listing ($100-billion valuation) as a catalyst for the BNB price hike.
Binance financials are better than coinbase $BNB
Coinbase valuation 80-100 billion on NASDAQ listing
Estimated valuation for me is 80 bill+
Current = 62B
— Yaz (@YazTrades) April 6, 2021
A common narrative spun up over the past few weeks is that the direct listing of COIN is also adding value to centralized exchange tokens. Analysts are also speculating that other U.S.-based regulated exchanges like Kraken and Gemini will likely follow Coinbase’s path and attempt to raise funds through a stock offering.
To understand BNB’s potential, one must first understand the differences between equities (stocks). After this is cleared up, it will be possible to analyze the possible drivers of BNB’s appreciation.
BNB does not represent shares of Binance
BNB token provides holders with a discount on trading fees, and it is required for those wishing to participate in Binance Launchpad token sales. As BNB gained liquidity, it also became a base pair for other cryptocurrencies at Binance exchange.
Over time, other uses emerged as the Binance Smart Chain gained traction. For example, BNB can cover network fees and as serve as a utility token in the ecosystem, which includes decentralized apps (dApps) and games.
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