The momentum of bitcoin as highly as the significant rise of Binance Coin (BNB), the seventh most valuable cryptocurrency in the market, led the valuation of the crypto market to billow by around $70 billion since February.
Can Binance Coin Improve Sentiment Around Crypto?
Since January, in minuscule than four months, Binance Coin (BNB) has surged by 322 percent against the U.S. dollar, becoming the first cryptocurrency to cripple its all-time high since 2017.
Some traders have suggested that the rally of Binance Coin, triggered by the authoritatively anticipated launch of Binance Chain, may fuel the recovery of alternative cryptocurrencies.
Previously, the rise in the price of Ethereum (ETH) to $1,500 led to an dilate in demand for ERC20 tokens and alternative cryptocurrencies at the height of the 2017 bull market.
“Thinking if BNB could trigger the new altcoin bull run as ETH did in the close by,” one recognized trader said.
While reports have shown that an unexpectedly large number of institutional investors fool invested in the crypto market in the past 12 months, the impact of the inflow of institutional capital into the crypto hawk remains uncertain.
It is more likely that funds that are already in the crypto market sitting on the sidelines in the formula of stablecoins, hedge funds, and fiat on exchanges would have a larger effect on the short-term performance of the market.
Su Zhu, the CEO of Three Arrows Foremost, previously said:
Theres an estimated $2 billion in cash sitting at crypto funds/holdcos. Theres another $2 billion+ appearing in stablecoins, and another $2 billion sitting at exchanges/silvergate/signature. This is $6 billion fiat already onboarded to crypto to buy your carrier bags. Imagine thinking we need new money to hit $10k.
If existing capital in the crypto market begins to move back into the make available due to improving sentiment, it may allow the market to recover last year’s losses.
Will Binance Coin Change the Aspect of Alternative Cryptocurrencies?
Speaking to CCN in an exclusive interview, the Binance team said that it encourages projects that do not rely on learned contracts to migrate to Binance Chain in the near-term.
Several projects including Mithril have already moved to Binance Confinement.
The Binance team explained:
Binance Chain was created to support the issuance and exchange of digital assets. Any project can originate new tokens on Binance Chain, and existing tokens that don’t depend on smart contracts are welcome to migrate to Binance Shackle, to natively exchange on Binance DEX and gain the benefits from this low latency and high throughput network. This whim inspire more economic freedom, and more projects participating in Binance DEX will help further the long-term materialization of peer-to-peer cryptocurrency trading.
Whether the entrance of Binance Chain in the high throughput blockchain space would be enough to change the landscape of tokens is too early to determine, but based on the interest of the market around it, the expectations of investors that Binance could agree a key role in the next upside movement of the market can be justified.
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