The native cryptocurrency of Binance, BNB, has recently seen a series of setbacks, losing a startling $10 billion market share since June 5. This sharp fall may be due to the SEC’s complaint against Binance, which accuses the exchange of offering an unregistered security.
Regulatory issues unfortunately continue outside of the USA. The commerce has also faced difficulties from Belgium, the Netherlands, and France, adding to the strain that BNB is under. As a result, the token’s value has further decreased, raising concerns among investors and buyers about its future.
The market value of BNB is currently $37 billion, down from almost $47 billion on June 4, the day before the U.S. SEC filed a legal lawsuit against Binance. Like a stock-like asset, the value of BNB is closely correlated with the effectiveness of Binance’s trading platform and the wider ecosystem.
Along with Binance.com’s trading volume, BNB had a stratospheric ascent, rising by almost 1,300% in 2021 and peaking at about $675 per token, translating to an astounding $110 billion market value.
Notably, Binance encourages users to maximize BNB by offering discounts on cryptocurrency purchases bought using BNB. Notably, 5.2% of the more than $55 billion in buyer property owned by Binance is made up of BNB tokens. Additionally, BNB serves as the native currency of the Binance-founded blockchain known as BNB Chain. According to SEC filings, the firm also uses BNB for employee remuneration, including salary and bonuses.
Since the year’s beginning, Binance’s global market share has decreased from 64% to 56%. At the same time, Coin Version recently revealed that trading volumes on Binance.US, its American affiliate, have experienced a rapid decline.