In an announcement on April 26, Binance stated that it would be listing MicroStrategy (MSTR), Microsoft (MSFT), and Apple (AAPL). The MSTR/BUSD pair will be listed on April 26. The other two, also tradable in Binance’s own stablecoin, will launch on April 28 and 30. Binance already has two stock token pairs listed for Coinbase … Continued
BNB price rallied by more than 20% in the last 24 hours due to several key reasons.
The price of Binance Coin (BNB), the native cryptocurrency of Binance and Binance Smart Chain, rallied by more than 20% in the last 24 hours.
The swift recovery comes after a market-wide correction on April 18, during which major cryptocurrencies including Bitcoin (BTC) and Ether (ETH) saw a sharp decline.
ETH price, for instance, declined from $2,400 to as low as $1,900 in a sudden pullback as Bitcoin plunged below the $60,000 support level to as low as $52,000.
Overheated futures market gets a reset
The market saw a steep pullback in a short period because the futures market was extremely overheated.
Over $10 billion worth of cryptocurrency positions were liquidated on a single day, with Bitcoin accounting for over $5 billion of it.
Since the drop was more technical than fundamental, and it was a cascade of liquidations that caused the pullback, the market pared most of the losses relatively quickly
It was also evident that the futures market led the correction because the price of major cryptocurrencies was trading lower in the futures market than the spot market.
Adam Cochran, a partner at Cinneanhaim Ventures, explained:
“I think what we saw was a cascade of tightly wound retail positions on a weekend market, get toppled, but somewhere along the line, there was a matching book fail that caused stop-losses to not get hit and when that happened it put a massive $63M position in jeopardy.”
He added that the liquidation of a $63 million position shocked the market, which put even the major cryptocurrencies at risk of a speedy drop.
“That $63M position getting liquidated is what put the market in major jeopardy, but by that time there was already degraded performance issues connecting to Binance and spiking gas fees. So there was very little way for anyone to backstop or arbitrage that liquidation.”
BNB fundamentals remain strong
After the initial futures market-driven drop, cryptocurrencies with strong fundamentals began to recover first.
While Bitcoin and Ether rebounded relatively quickly by 12% and 15% from their respective lows , BNB outperformed both BTC and ETH within the past 24 hours in its recovery.
The strong performance of BNB stems from two positive catalysts: the record $600 million BNB burn by Binance and the uptrend of Binance Smart Chain metrics.
On April 16, Cointelegraph reported that Binance burned $600 million worth of BNB in the first quarter of 2021, which reduces the circulating supply and suggests the exchange generated at least $750 million in quarterly profit.
#Binance team had an allocation of 40% of the total supply of #BNB from the ICO days, which is worth just over $37 billion dollars at today’s (dropped) prices. We have not sold a single #BNB so far, and never intend to. We will burn it all. More info: https://t.co/6YM7O7vqDZ
“Traders were ready to buy the dip. Was anticipating a market dip all week, yet I got lazy and did a bad job positioning myself for success. Had 10+ alts on my list, only set bids for eth. Thankfully experienced minimal drawdown tonight, but still really played this opportunity poorly. Good learning lesson here.”
The quick inflow of capital into the altcoin market shortly after the dip led many altcoins to recover swiftly, which likely catalyzed BNB’s upsurge.
CoinGecko has released a market report for Q1 2021. It reveals both expected and surprising insights. The report covers several topics, including non-fungible tokens (NFT), the incredible BNB rally, and a detailed analysis of the decentralized finance (DeFi) sector’s performance. The report dives into market performance over the quarter, which has been one of its … Continued
Bitcoin update On April 10, bitcoin made an attempt at reaching a new all-time high but was stopped by the $61,600 resistance area. This created a long upper wick. It made a similar attempt on April 12 but was stopped once again. Today, BTC appears to be gearing up for yet another breakout attempt. The MACD has … Continued
Binance Coin has been one of the best-performing altcoins thus far in 2021. It opened up the new year trading at $37 but has since shot off to a new all-time high of $641 on April 12. This equates to a massive gain of 1,621%. However, it appears that BNB has reached a significant resistance … Continued
Messari researcher Wilson Withiam has delved into the BSC structure in an April 12 tweet in which he stated that it is more centralized than most platforms. “Some might overlook the influence Binance Chain has over Binance Smart Chain’s validator set. BSC has 21 active validators, making it more centralized than most platforms.” He added … Continued
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Disclaimer: the views and opinions expressed within the interviews may not reflect the views and opinions of the Cryptoways or Brandplus Solutions but those of the interviewees. Cryptoways and Brandplus Solutions are not responsible for any harm, physical, financial, or otherwise resulting from the misuse or improper application of given advice.