Binance Coin (BNB) price has soared to a new all-time high of over $610 and here’s why

Binance Coin (BNB) price has hit an all-time high of $ 610, up more than 20% over the past 24 hours, marking an impressive 69% gain over the past seven days. So, what is the reason behind the aforementioned significant increase?

binance-coin-bnb-price-has-soared-to-a-new-all-time-high-of-over-610-and-heres-why

BNB/USD 4-hour chart | Source: TradingView

Binance Coin price kicked off four years ago at around $ 1.50 and today it surged to the $ 610 all-time high

The progress the token has made since its launch in 2017 is even more remarkable, considering that at the beginning of the year it was trading around $ 40 – this means BNB from Year-to-date has brought owners and investors a whopping 1200% return.

Binance Coin’s latest bull run stems from a growing number of use cases. The token, which originated as a tool to reduce transaction fees on Binance.com, is currently indispensable in Binance Chain and Binance Smart Chain (BSC).

Two blockchains maintained by Binance are gaining in popularity by decentralized application (dapp) developers, especially in the decentralized financial (DeFi) space. As dapps built on Binance’s blockchain attract users, the trading volume increases, pushing up the price of BNB.

An example of a dapp built on BSC is Pancakeswap, the second-largest decentralized exchange (DEX) by trading volume. With almost $ 2.5 billion traded in the past 24 hours, Pancakeswap, which uses BNB for liquidity pools, not only outpaces Ethereum-based competitor Uniswap but also surpasses Coinbase Pro in terms of transaction volume.

Meanwhile, BNB is rapidly approaching its 15th quarterly token burning event. As explained by Binance CEO Chanpeng ‘CZ’ Zhao, each token burn involves a certain amount of BNB being taken out of circulation, thereby increasing the value of the remaining funds.

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