Binance Coin (BNB) Continues To Perform Better In Worse Times

The general perception is that when Bitcoin (BTC) falls, altcoins fall even more aggressively. However, there is one altcoin which is not subject to this behavior. That altcoin is Binance Coin (BNB). Since the beginning of the year, has performed a lot better than most altcoins during bad times. The price action on the BNB/USD chart above shows that Binance Coin (BNB) has traded in a very close range especially since April 2018. This means that investors who did not feel comfortable holding Tether (USDT) have preferred to cash out in BNB to take profits or protect against market corrections. This explains why the value of Binance Coin (BNB) rises or holds ground even as the whole market nosedives. Binance is currently the largest exchange in the cryptocurrency space and has a growing number of users as it offers access to a lot more cryptocurrencies than exchanges like Bittrex or Poloniex. It is also more transparent and has the lowest fees compared to most exchanges. In addition to that, Binance offers 50% discount on fees when traders use Binance Coin (BNB). The supply of Binance Coin (BNB) is also limited which makes it an effective store of value to buy cryptocurrencies with or pay exchange fees. Most investors holding Binance Coin (BNB) believe know that whether the market goes up or down, Binance Coin (BNB) can be used to trade cryptocurrencies. 1 BNB will always be 1 BNB. As most cryptocurrency investors like to measure their coins only against Bitcoin (BTC) or in their own terms, it makes no difference in the long run as long as they believe that the correction will be over at some point and a new rally will create more demand for Binance Coin (BNB) as trading grows and volume returns to the market. A longer analysis of Binance Coin (BNB) shows that the coin has performed extremely well against USD ever since its creation. The weekly chart above for BNB/USD shows that the price has been on a continued climb against the US Dollar. Even the recent market correction has only resulted in a 43% drop from its all time high in January 2018 which is really impressive compared to most altcoins that are down more than 70% since their all time highs. The total number of coins that will ever be in circulation is 195 million. Presently, 98 million coins are available. It is pertinent to note that Binance Coin (BNB) can also be used to invest in ICOs that are launched on the Binance exchange. This increases demand for Binance Coin (BNB) and the fact that it is so close to reaching its total supply of 195 million makes it a very effective store of value. It also makes it the go to coin for someone looking to park their money during bad times (if they are not comfortable using Tether). Wave trend analysis for the weekly chart of BNB/USD shows that Binance Coin (BNB) is on the verge of a massive breakout, one that will most likely coincide with the next altcoin rally.