The S&P 500 is trading near its all-time high, but Binance coin BNB has plunged about 16% over the last 30 days due to a sudden decline in bitcoin prices. Even after the drop, the BNB price is 1000% up over the previous 354 days. Launched only a year ago, Binance, the world’s biggest crypto exchange, the Binance Smart Chain is compatible with the Ethereum Virtual Machine. Binance recently made a major announcement related to Binance Coin BNB, which includes implementing a new Auto-Burn protocol to replace its current quarterly burn mechanisms.
In 2021, Pancakeswap, a decentralized crypto swap exchange, was responsible for more BSC transactions than the entire Ethereum network. Some of the most purchased tokens on Pancakeswap V2 swap in 2021 include EverGrow (EGC) and Radio Caca (RACA). New tokens like Evergrow are solely responsible for generating hundreds of thousands of transactions daily for the Binance chain. EverGrow is the first hyper-deflationary token that rewards its holders in BUSD that is generated from every buy/sell/transfer transaction in EGC tokens. EverGrow contracts distribute 8% of every transaction among its holders. Evergrow recently announced that in just 12 weeks, they have added 118K+ wallets as holders on the Binance chain and distributed more than $30 Million BUSD in rewards. It ultimately means its contract executes thousands of transactions every day to send rewards to its holder.
Although Binance chain transaction fee is much lower compared to the Ethereum chain, it still means millions of dollars worth BNB being locked on Pancakeswap liquidity pools and paid in gas fees. Reward-based tokens like Evergrow are being considered the future of dividend-paying stocks or staking pools because the rewards to be distributed among holders are generated from daily trading volume instead of inflating the circulating supply by minting new tokens every day.
According to coingecko, Crypto has gained more than 189,00% since its launch. The success story of EGC has inspired hundreds of new BEP20 tokens to launch on the Binance chain and contributed millions of dollars in daily trading volume. EverGrow is a relatively new currency, but its future looks bright as the currency is yet to launch its utilities, including play-to-earn games, NFT lending platform and Buy/Sell marketplace, content subscription platforms, etc. If these early-stage projects continue the initial success, then Binance coin BNB and BSC might soon overtake the Ethereum chain in total transactions executing daily on its blockchain. Currently, each block on the Binance chain is confirmed in approximately 3 seconds.
In the past 24 Hours, more than 7M transactions were executed on the Binance chain. The short terms prediction for BNB looks bullish. According to technical indicators, the 20-day EMA for BNB is flat, and the RSI is just above the midpoint, suggesting a status of equilibrium between the bulls and the bears. Binance coin BNB price could first rally to $570-$575 and then rise to $620. There is strong technical support for BNB at $500. If the price breaks above $575, BNB could first rally to $617 and then to the overhead resistance zone at $668.40 to $690.50, which will mean that the correction may be over for the significant gains BNB price made this year. Subscribe to News Reportz daily updates newsletter to keep updated with the latest crypto updates.
