What has been happenings?
Binance Coin has been giving one of the best performance in the recent bull-run. The coin achieved phenomenal growth, breaking major resistance levels. Binance Coin now stands at the third rank in terms of market capitalization and has eyes set on the position of the queen of the cryptocurrencies, Ethereum.
At the beginning of the year, Binance Coin was at a price level of less than $50. However, the cryptocurrency picked up momentum in early February and established an all-time high of $330. Afterwards, the coin fell to $190 but has ever since stabilized above $200. At the time of writing, Binance Coin stands at $235. The market sentiment for the cryptocurrency is bullish as investors and analysts alike are expecting the cryptocurrency to, once again, hike upwards.
What is propelling Binance Coin upwards?
In a world of digitization, decentralization is the new hot concept. Decentralized Finance has been gaining increasing popularity and so has been decentralized exchanges (DExs). Ethereum – the queen of the cryptocurrencies – is the most sought-after cryptocurrency for decentralized as it is the pioneer of the smart contract technology. However, as the cryptocurrency market gained momentum, Ethereum succumbed to some design flaw as the network was not able to handle such phenomenal traffic. The result was the price of the Gas token of the network hiking up. The increased Gas prices also led to Ethereum-based DExs losing their popularity. With transactions on the Ethereum network costing really high, investors started looking for alternatives.
Ethereum-based decentralized exchange, UniSwap, lost a lot of traffic to Binance-based decentralized exchange, PancakeSwap. In terms of daily trading volume, PancakeSwap now surpasses UniSwap. The rise of PancakeSwap has been one of the contributing factors to the momentum of Binance Coin. There is also the possibility that Binance Coin can dominate Ethereum in the decentralized finance sphere.
How high can Binance coin go?
Analysts and traders have high expectations from the cryptocurrency given its recent rise to popularity. A trader has pointed out towards a cup and handle formation. The bullish pattern indicates towards an upward break out of the cryptocurrency. A few major Fibonacci retracement levels has also been identified and per the analysis, Binance Coin can go as high as $660.