On February 11, as shared by co-founder Yi He and CEO Changpeng Zhao, the price of Binance Coin (BNB) achieved a new all-time high against Bitcoin at 0.0026712 BTC.
While the valuation of the cryptocurrency market has fallen by more than 85 percent in the past 14 months, BNB has remained as one of the best performing digital assets with a loss of 61 percent against the U.S. dollar.
Increasing Confidence in Binance Coin
The strong price movement of BNB throughout January and February has been led primarily by fundamental factors.
The coin burn of BNB, a mechanism used by Binance to purposefully burn the supply of BNB using the profits generated by the exchange, has played a vital role in creating new momentum for the digital asset.
But, the overall growth of Binance as a company and as the world’s’ largest cryptocurrency exchange by daily volume likely fueled the rapid increase in the price of BNB in a short period of time.
Throughout the next 10 months, despite the substantial decline in the prices of crypto assets, the exchange intends to continue its aggressive approach in developing fiat on-ramps and expanding its business.
Less than two months into this year, Binance has launched a new fiat-to-crypto exchange in Europe called Binance Jersey, enabling euro and British pound trading pairs.
Following the launch of Binance Jersey, Binance CEO CZ said that the newly created exchange was overwhelmed with demand within 24 hours after its introduction.
Speaking to Boxmining at the Binance Blockchain Week conference held in Singapore, CZ said:
“So far, the Jersey market is overwhelmed with demand. That shows there’s plenty of demand there. Right now, the way i view it is that most of the money is still in fiat, it’s still much larger than the crypto market cap. So we need to get fiat coming in. On the other side of it, we are working on the decentralized exchange so the Binance DEX will come out soon.”
One week after the successful launch of its Europe-based fiat-crypto-exchange, the firm integrated a credit card payment option into its main platform, providing more ways for users to purchase cryptocurrencies with fiat.
In the upcoming months, the company is expected to show progress in the development of its decentralized exchange (DEX), a platform on which BNB would serve as a native currency.
The reluctance of Binance to slow down in development and expansion during a stagnant market phase has translated to an overall increase in demand for the company’s digital asset.
Belief in Financial Stability and Survivability
In a Twitter AMA session, CZ emphasized that the company is ready to survive any number of years regardless of market conditions, which further fueled the confidence from investors toward both the company and BNB.
“I think basically Binance is ready to survive any number of years, no matter if it’s bear or bull. I think we basically don’t really look at the market too much, not as much as people actually think we do. We just keep our head down and build features. Binance is very healthy financially and also very stable in terms of the team,” CZ said.