BNB is a token created by Binance, which is mainly related to the optimization of trading within the renowned exchange. Nevertheless, several additional use cases are presented today, including the acceptance of the token as a payment method for everyday transactions. Since we know what it is used for, we ask ourselves whether the BNB has good potential for 2020, and we want to answer that today.
As of this writing, the Binance token is trading at $ 16.29, a price reached by a weak but persistent appreciation after it recently hit $ 6.41. This is the low of 2020. BNB has thus increased its price by more than 150% in the past 45 days.
Like much of the crypto market, the BNB has fully recovered from last March’s downturn and strongly rejected bearish intentions.
However, this mood is still there and stronger than the upward trend that has continued in recent weeks.
The BNB’s potential is being driven by the growth of the crypto market
Before starting the token analysis, it should be noted that thanks to Bitcoin’s strong dominance in the crypto market, BNB often moves in correlation with BTC and other key players in the ecosystem.
With the upcoming arrival of BTCs Halving, investors have resumed their optimistic mood. The vast majority hope that new highs will be reached after a few months of the event. This will undoubtedly increase the potential of the BNB.
Further development of the Binance project in 2020 and its impact on the potential of the BNB
The use of the potential of the BNB is directly related to the further development of the Binance project.
The company has designed the BNB token to become a comprehensive system that covers the various facets of the Binance ecosystem.
The token is currently of great use because the IEO lottery keeper, which acts as a payment system for the decentralized exchange, Binance, among other things, charges transaction fees BEP2 as the main and native token of the Binance chain.
The most common recurring use of BNB relates to transactions within the Binance exchange. Currently, users who trade the native token on the exchange are rewarded with a 25% discount on transaction fees.
This voucher is halved every year and so on until the 5th anniversary of the exchange is complete.
Binance is the leading cryptocurrency exchange, and with its continued growth, token usage is expected to increase at the same rate.
About burning BNB
The technical token document specifies the first issue of the maximum bid of BNB 200 million. This promises investors a deflationary character, which is also supported by the constant burning of tokens by Binance.
This means that 20% of the company’s quarterly earnings will be bought by the BNB for cremation. This will continue until half of the total supply, ie 100 million, is eliminated.
In 2019, the Binance project’s growth was incredible, with an average daily volume of $ 2,852 million, 15 million users worldwide, reach in 180 countries, physical presence in more than 40,591 pairs available for trading, technical support in 16 languages etc.
In terms of the BNB’s progress in the same year, the amount of BNB burned increased from $ 120,000 million in 2018 to $ 207,000 million in 2019, 1 million token users, and a step from 42 use cases in 2018 to 180 in December from last year.
This upward trend in the Binance ecosystem is not expected to reverse this year. The sustained growth will lead to new achievements and thus an increase in the use of the potential of the BNB.
The BNB token in its short lifespan was reassessed in a really surprising way. The lowest price was $ 0.096 in August 2017. Two years later, on June 22, 2019, Binance Coin hit its all-time high of $ 39.57.
This unbelievable bullish trend has led us to have a positive outlook today when we look at the broad time frame of one month with increasingly clear lows and a recent strong rejection of falling prices.
The scenario changes in the weekly candlelight time frame. You can see a bearish force still higher than bullish intentions, which has caused EMA 8 and SMA 18 to cross lower.
The BNB price is currently fighting against these dynamic barriers. If exceeded, this would pave the way for an even deeper recovery.
From this graph, we see a bullish scenario with higher and lower lows for the short term, but with a significantly lower strength than the declining trend observed in mid-March.
The moving averages of 8 EMA and 18 SMA confirm this bullish structure, which is currently functioning as dynamic support, while the 200 SMA supports the bearishly dominant force left by Black Thursday’s slump and acts as a moving resistance directly in the region. of neighboring resistance at USD 16.5.
If the bears want to resume the bearish mood, they must break the $ 15 immediate support.
Otherwise, nearby resistors will be visited in the coming days. With this in mind, if the barrier in USD 27.5 is exceeded, the outlook for Binance Coin for 2020 is completely optimistic.
What do you think? Will the potential of the BNB bring its price to a new all-time high in 2020? Let us know what you think in the comments!