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Binance (BNB) is spiking: what's next?
Binance Coin (BNB.X) is reaching new highs--the cryptocurrency is trading at over $17.00. The coin was introduced through an ICO by the largest cryptocurrency exchange, Binance, with a total supply of 200 million.
What is the BNB price prediction?
Let's look at the technical parameters. There is a bullish trend across the board in the crypto market and Binance Coin is benefiting disproportionally. BNB will soon test the resistance at $17.50.
The relative strength indicator (RSI) is inching higher and is now at the 60 mark. The immediate support rests at $16.00, but more declines will be stopped at $14.00. The bullish trend could lead to another breakout and a possible new peak at $20.00.
BNB is attractive to investors because Binance, the exchange, promised in its whitepaper to buy back BNB using 20% of its profits and burn them. The burn will continue until the time the total supply is brought down from 200 million to 100 million, representing a 50% reduction.
Although burning is a good deflationary measure, it's not necessarily an attractive value proposition commercially. What makes the BNB token commercially attractive is the fact that it's used to pay trading fees on the Binance platform and rewards traders with a 50% discount for using the coin. It also powers the Binance ecosystem, while being traded on other exchanges as well.
Recently BNB shot in price when the crypto exchange announced a bonus incentive for BNB investors: every hodl of at least 500 tokens would earn a 40% bonus, twice higher than the previous amount of 20%.
What then transpired is that many users below the 500 BNB threshold wound up acquiring more tokens to receive the 40% commission rate bonus, which caused the BNB price to spike.
For the latest news on and price of BNB, please visit Finstead and type "BNB news" or "BNB price".