The crypto market’s August resurgence appeared to proceed on Monday, August 23, when the worth of bitcoin reached the $50,000 mark for the time since April 2021. The main crypto’s renaissance now appears to be in full swing as evidenced by the surge in trading quantity as well as the slight rise in bitcoin’s market dominance.
The BNB Surge
Nevertheless, identical to within the last bull cycle, some centralized exchange coins (or tokens which are issued by cryptocurrency exchanges) once more seem like performing better than bitcoin. This bitcoin-beating efficiency by change tokens is epitomized by Binance’s BNB coin, which at the time of writing has gained 20% in just seven days.
As data signifies, the price of the BNB coin briefly went above $500 on August 23 before settling back down a bit, then rising up again to hover above and around $500. The token’s rise above the $500 mark — which is the first time this has occurred since May 18, 2021 — adopted BNB’s jump of over 10% in just 24 hours.
At this price, the BNB token’s market capitalization of over $77 billion is enough to see the exchange token being ranked as the fourth largest crypto asset. This valuation makes the BNB token, which is already up by 1200% in 2021, the biggest exchange token by far.
The next best-ranked centralized exchange token, the FTX token — whose market capitalization stood at $4.77 billion at the time of writing — had a gain of around 4% in under 24 hours and over 7% in seven days. However, just like BNB, the FTX token’s 2021 gains of over 700% dwarf bitcoin’s 67% year-to-date gains.
Actually, out of the 13 centralized exchange tokens which are listed, only the Qash, Bibox, and QTF tokens have had yearly gains which are below 100%. Alternatively, from the 13, only two centralized exchange cash, WRX (2,328%) and Kucoin’s KCS (1,934%), have outperformed the BNB token.
Rise of Centralized Exchange Tokens
Remarking on why centralized exchange tokens are outperforming among the popular cryptos, Kucoin CEO Johnny Lyu told Bitcoin News that this may occasionally have one thing to do with merchants’ shifting perceptions. Lyu famous:
Traders are increasingly choosing centralized exchange tokens as a result of these now look more attractive. The financial performance of the crypto exchanges themselves, new products as well as the itemizing of new tokens all adds to the rising recognition of exchange tokens.
Nevertheless, within the case of the KCS token, Lyu asserts that his firm’s practice of utilizing earnings to purchase again the tokens from the secondary market is also partly responsible for the crypto asset’s phenomenal price rise.
Now, with many crypto analysts — together with the S2F creator — predicting that BTC will hit one other new all-time excessive, others like Lyu insist that centralized change tokens will proceed to carry out higher than bitcoin.