Binance Coin (BNB) Steals Third Place; market capitalization exceeds $ 40 billion

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Binance Coin (BNB) has posted a resounding rally in favor of the bulls. The market cap of the exchange token surged above a new all-time high of $ 40.67 billion on February 19. It is now the third largest crypto asset by market capitalization on the cryptocurrency leaderboard.

With this, BNB toppled the world's largest stablecoin, USDT, to claim the spot. As its dominance grows, the crypto asset now threatens Ethereum (ETH), which has retained its title as the second-largest coin for years.

Binance Coin (BNB) Daily Chart

BNB has been on an uptrend for quite some time. It was trading near its recently established peak of $ 276.6. As shown in the chart above, the token's RSI has held its position above the overbought zone for almost three weeks in a row.

As he continued to break new records, Binance CEO Changpeng (CZ) Zhao thanked the Binance Angels and the community in his latest tweet which read:

Unlike the native token of the Binance ecosystem, other cryptocurrencies saw slight gains in the last 24 hours. So what made your coin go up almost 50% in just one day? The answer is decentralized financial activity.

PancakeSwap reinforces activity

DeFi activity in recent weeks has pushed the price of BNB to levels never seen before. The crypto asset has been at the center of the burgeoning Binance Smart Chain (BSC) network, and as the ecosystem grew, so did the token.

More specifically, it was due to increased interest in the DeFi PancakeSwap project built at the BSC.

Even as DEX started out as a pale Uniswap knockoff, it continued to see its trading volume outstrip several major projects to become the world's top DEX service by trading volume on the CoinGecko listing attached below.

top defi platform

PancakeSwap's success story is no less than a loser's growth story.

Seizing this opportunity, CZ made a canny search for Ethereum's staggeringly high fees and tweeted:

Binance has faced severe criticism regarding the centralized nature of existing systems. His foray into DeFi was no different and the development of BSC placed him even more in direct competition with Ethereum.

The main leverage that the former had was a lower transaction fee, which helped their case in quickly onboarding users to their platform. This, in turn, boosted BNB's position among other high-yield assets.

The Ethereum network, on the other hand, has been plagued by high transaction fees. But how He said once Jameson Lopp, "True resistance to censorship does not come cheap."


If you found this article interesting, here you can find more news about DeFi





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