Crypto currencies including major player Bitcoin among others have been tumbling at a never before speed. In the last two days cryptocurrencies giants have lost close to $5 billion as a long-running bitcoin sell-off again bears down on the market.
However, there is a silver lining as binance coin, the digital token from the world’s largest bitcoin exchange, has gone up by 16% over the same period and is up an unprecedented 120% so far this year as per CoinMarketCap.
Closely observing the crypto currency market, in last few days binance coin has surged past stellar and tron and now stands as the eighth largest cryptocurrency by market capitalization. Its total value is stand tall at $1.8 billion while it was mere $800 million at the start of 2019.
The rise in shares of binance coin is something that goes against the trend as it has picked up whereas the larger cryptocurrency market has gone southward as trading has remained more-or-less flat over the last few months. In this slump Bitcoin, still the largest cryptocurrency by some distance, has been trying its best to break the shackles and get past $4,000 per coin over recent months, but in vain.
Compared to this , though smaller in scale, the recent success of binance coin, which is yet to touch its all-time high of $24 per coin, is being perceived to garner some confidence in the bitcoin and cryptocurrency market.
Those playing in the stocks and analysing the scenario bet that if the markets are moving it means people are trading, and Binance has a big share of those volumes.
In the last quarter of 2018, merely between November 15 and December 15 , Binance moved $20 billion worth of bitcoin. As per the reports obtained from various sources including the data provided Chain Open Research, Binance is world’s largest bitcoin and crypto exchange by volume, well above the likes of OKEX, Coinbase and Kraken.
Not just that it has a good year ending, so far for Binance 2019 too has been fruitful. In February 2019, the Hong Kong-headquartered and Malta-registered company launched the testnet of its highly-anticipated decentralized exchange (DEX).
Binance chief executive Changpeng Zhao, has stayed that DEX will prioritize speed, security, and user-friendliness.
Binance’s decentralized exchange is based on block chains and has been designed to scale and process trading volumes similar to the biggest centralized exchanges.
This is done to suit the needs of niche traders and investors who prefer the idea of decentralized exchanges for they remove some security issues and dependence on one centralized company.