Binance Coin (BNB), the cryptocurrency backed by digital exchange Binance, has regained the $50 billion market cap after its price jumped above $300 on Monday 19 July.
According to the latest data published by Coinmarketcap, BNB is the 4th most valuable cryptocurrency in the world behind Bitcoin (BTC), Ethereum (ETH) and Tether (USDT). Binance Coin is currently trading near $305 with a market cap of over $51 billion.
Binance Coin started 2021 at a price level of $37 and a market cap of less than $8 billion. The cryptocurrency crossed the market cap of $50 billion for the first time in April 2021. BNB became one of the few digital currencies to reach a market cap of $100 billion in May 2021 amid a surge in demand for cryptocurrency assets.
However, due to the latest dip in the overall market cap of digital currencies, BNB dropped from the high of $685 on 10 May to as low as $225 on 23 May. Since 24 June 2021, the price of Binance Coin has stabilized at around $300.
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Binance Coin Burn
One of the major reasons behind BNB’s 700% jump in 2021 is the Binance Coin Burn. The company has burnt a large number of BNB coins since the start of this year. “In summary, 1,296,728 BNB (390,855,150 USD) burned by Binance. The remaining 16m BNB was unlocked and moved to a team address, according to the schedule in the white paper. Binance team has never used or sold a single team BNB thus far, only burned them,” Changpeng Zhao, CEO of Binance, mentioned on Twitter yesterday.
Earlier this year, the CEO of Binance explained the potential impact of the recent BNB burns on existing Binance Coins. “When you burn coins, they are taken out of circulation forever. It increases the value of the remaining coins,” Zhao said.
The world’s five most valuable cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB) and Cardano (ADA).