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The crypto market resurgence that has been evident all through August seems to be in continuation yesterday when the value of bitcoin breached the $50,000 mark for the first time since April. Bitcoin’s renaissance however now seems to be in full swing as made obvious by the surge in trading volume as well as the slight increase in the dominance of bitcoin in the crypto market.
The Rise of BNB
This time, however, exactly as it happened in the last bull cycle, some centralized exchange coins have appeared to be outperforming bitcoin yet again. Leading the packing exchange tokens presently outperforming bitcoin in Binance’s BNB coin, which has already gained 20% in just seven days, as at the time of putting this report together.
Crypto Market Resurgence: Exchange Tokens Outperforming BTC
From the data available, the price of the BNB coin briefly flew above $500 on 23rd August before falling back down a bit, then rising up above $500 again where it presently hovers above. The token’s rise above the $500 mark is the first time since it last happened on May 18, 2021, and it immediately follows BNB’s jump of over 10% in just about 24 hours.
At this current price, the market capitalization of the BNB token which is over $77 billion is more than enough to bring the exchange token to fourth on the ranks of the largest crypto assets. This valuation will also be enough to see the BNB token, which has already risen by 1200% in 2021, become the biggest exchange token by far.
The second-best on the ranking of centralized exchange tokens, the FTX token — whose market capitalization stands at $4.77 billion at the time of writing — had already gained around 4% in under 24 hours and over 7% in seven days. However, just like the BNB, the FTX token has gained over 700% in the year 2021 thus dwarfing bitcoin’s gain of 67% so far in 2021.
Rise of Centralized Exchange Tokens
When asked why centralized exchange tokens are outperforming some of the world’s most popular cryptos, Kucoin CEO Johnny Lyu told Bitcoin News that this may be related to the traders having a shift in perceptions. Lyu also noted that the growing popularity of these crypto exchanges has to do with their financial performances in recent times and the new range of products they offer. Lyu also claimed that traders will continue to choose these centralized exchange tokens because they now look more attractive.
Now, with many crypto analysts — including the S2F creator — giving their consistent prediction that BTC will hit another new all-time high, other people like Lyu insist that centralized exchange tokens will continue to outperform bitcoin.
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