The meteoric rise of Binance has been one of the most interesting stories in 2018. The exchange's success is due in large part to its native token, Binance Coin (BNB). This cryptocurrency is helping fuel Binance's growth, as it provides a medium of exchange on which traders can make trades or invest in trading pairs with other cryptocurrencies. But how exactly does this affect the cryptocurrency markets? In this post, we'll explore the impact of BNB on cryptocurrency prices and trading volume, including regulatory factors influencing market dynamics throughout the world.
Binance's meteoric rise
Binance's BNB token has seen an incredible rise in its market cap, price history, and dominance over the last year. In fact, it's one of the most popular coins out there right now.
The first time you see this happen is when you look at the price history of BNB over time (see below). You can see that since its introduction in 2017 until the present day:
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The token's value has increased by more than 50x;
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Its market cap has gone from less than $500 million USD to nearly $5 billion USD;
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Its daily trading volume has increased from around $1 million USD per day to over $10 million USD per day!
BNB's effect on exchange dynamics and trading volumes
BNB is the most used token on Binance, and it's not even close. The second-place token by volume of trading pairs stands at about 10% of BNB's total volume. This means that over 90% of all crypto assets traded on Binance are paired with BNB.
This dominance has several effects:
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Users who want to buy or sell an asset must first deposit their funds into a wallet containing a certain amount of BNB (or another coin). This increases the demand for BNB as it becomes more difficult to purchase it or exchange eg existing doge to bnb without buying something on an exchange or accessing through another service provider such as Coinbase Pro or Kraken Exchange.*
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Users must pay fees in order to trade on exchanges like Binance; these fees are paid in native tokens such as BTC/ETH/USDT pairings which result in increased demand for those currencies as well because traders need them in order to access these markets.*
Regulatory factors and BNB's position in the global crypto landscape
Binance Coin (BNB) has been a safe haven for traders in the face of regulatory uncertainty. BNB is a stablecoin that is not correlated with other cryptocurrencies. Unlike USDT, which is controlled by Tether Limited and could potentially be manipulated by its parent company, BNB's supply and demand are determined by market forces alone. Because it's a decentralized token that isn't controlled by any single entity, there are no worries about regulators shutting down Binance or freezing user funds if they don't like what they see on their platform (like what happened with Bitfinex).
Finally, because Binance has been so successful at building up its brand over time along with its user base it would take an incredibly powerful force to prevent people from using this exchange even if it were shut down tomorrow; this will likely serve as further protection against government interference in the future!
Navigating market shifts: Strategies in the age of BNB dominance
Binance Coin is a useful token, but it has many other uses. It is also a store of value and a digital asset, as well as a security and a currency. BNB can be used to pay fees on the Binance platform or you can exchange bnb to ftm or another cryptocurrency at any time. If you own BNB and want to sell them for fiat currency (USD), then you'll need to find an exchange that allows users to do so and there aren't very many options currently available since most exchanges don't support fiat trading pairs with their native assets yet!
Conclusion
Binance Coin is a powerful tool for Binance, but it also has an impact on the wider cryptocurrency market. With its influence on exchange dynamics and trading volumes, BNB could provide insight into how other coins might fare in the future. The regulatory landscape surrounding cryptocurrencies continues to evolve worldwide, so keep up with news about regulations and their impact on crypto prices as well as announcements from major exchanges like Binance!
